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Will the 1031 Exchange be Repealed? Tax Smart Daily #024
Will the 1031 Exchange Be Repealed? [Tax Smart Daily 024]
June 24, 2021
How to Reduce Tax on Flip Income Tax Smart Daily #026
How to Reduce Tax on Flip Income [Tax Smart Daily 026]
June 26, 2021

June 25, 2021
Last Updated : November 5, 2024

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

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

Brandon Hall, CPA

Real Estate Dealer vs. Investor Tax Smart Daily #025

 

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. 

Subscribe to The Tax Smart Real Estate Investors YouTube channel for more answers to real estate tax questions!

 

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

Brandon Hall, CPA

Brandon is a Certified Public Accountant, national speaker, and is the Founder/Managing Partner of Hall CPA PLLC. Brandon works with real estate investors, syndicates, and private equity funds to optimize tax positions and streamline accounting and business functions. He believes that real estate investing is critical to building sustainable and generational wealth. Brandon worked at PricewaterhouseCoopers and Ernst & Young prior to launching his own CPA firm, Hall CPA PLLC (The Real Estate CPA). Through the knowledge gained by working with real estate investors, Brandon has built a real estate portfolio of 25 units consisting of multi-family, single family, and short-term rentals.

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