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May 20, 2024 | read

Real Estate Dealer vs. Investor [Tax Smart Daily 025]

Brandon Hall

If you’re flipping houses and get labeled as a real estate dealer, your flips will be treated as inventory. They won’t be eligible for 1031 exchanges, and they’ll have to pay self-employment taxes on top of your marginal rate (no capital gain rates for flippers).

There are certain things that the IRS and Tax Courts look for when assessing whether or not you are a dealer.

Watch this video to learn more about being tagged as a real estate dealer. 

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