Fix & Flips = Commercial Construction?

[Jami Krietzman]

Good Afternoon Everyone,

I have been speaking with different people trying to get our team in place so we can commence with buying properties to fix and flip and properties to buy and hold.  I just spoke with a CPA in a bigger company who told me that if we did 4 or more fix & flip properties in a year, then we would be taxed at 37% and be considered a commercial construction entity.  Has anyone ever heard of this before?  When listening to several of Brandon Turners Webinars, he has mentioned several times that the IRS likes real estate investors and thus taxes are more favorable to them because of tax breaks.  Am I misunderstanding him?  

I would greatly appreciate if any of you could shed some light on this and offer some clarity.  Depending on what people say and my further research, this might change our business plan.  We intended on flipping some properties to gain some additional income to purchase more BRRRRs.  Our goal is to buy 3-5 properties this year and then exponentially every year thereafter.

Thank you all for reading this!

Have an awesome day!

Health, Happiness & Blessings!