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Updated about 11 years ago on .
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Tax question for wholesaling/flipping and assignment of contracts
My husband and I have a newly established LLC (taxed as an S-Corp as recommended by our CPA). He does a combination of contract assignments and wholesale deals. We are currently doing our first rehab project and expect to have it finished and sold within the next 3-6 months.
Is "dealer status" inevitable?"Would he/our business have dealer status on all of the income generated? Or just on deals we close on and resell (wholesales/rehabs)?
This is all incredibly new to me. He has been doing real estate for years but just started working for himself and not someone else. Any insight is greatly appreciated!
Most Popular Reply
Income from both wholesaling and fix and flipping is just ordinary income.