How many flips per year, after holding a year, and keep cap gain rate?

[Jeff S.]

How many properties can you buy and sell, assuming holding at least a year, to maintain investor status (cap gain 15%) and not dealer (pay tax at higher rate)?

[Dave Toelkes]

Jeff S Na

If your investment strategy is to buy and sell for profit, it does not matter how long you hold the properties before sale -- the sale profit will always be ordinary income (subject to self-employment income taxes). You never have "investor" tax treatment for this strategy, never use long term capital gains tax treatment, your flip property can never participate in a 1031 exchange, and you can never depreciate the flip property.

The bottom line is that you are describing a property flipping business which will make you are a dealer to real estate from the very first flip.