1 result for tag: Dealer Property


Is a Property Fix-up and Sale an Investor or a Dealer Property?

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Background I’m an independent computer consultant who nets $100,000 from my proprietorship. I bought a house in March 2019, fixed it up, and sold it in April 2020 at a net profit of $85,000. I bought another house in May 2020, fixed it up, and sold it in June 2021 at a net profit of $125,000. Question These are my first two properties. Does the IRS consider me a real estate dealer or a real estate investor? Answer This is a tough call. If you keep doing this, you will be a dealer, without ...