Tax Consequences for Selling on Lease Option

[Randy King]

Our exit strategy is to sell to tenant/buyer using a lease and separate option agreement. We are trying to hold each property over a year for long term capital gains. Could the IRS at some level of activity (2/yr, 5/yr, 10/yr) step in and say we are actually flipping the houses and declare us dealers and be subject to short term gains and FICA?