Avoiding a 35% tax bill and real estate 'dealer' classification

[Account Closed]

It appears the difference between a 15%  and 35% tax bill is whether or not you are classified as a real estate dealer.  Many consider you an RE dealer (or at least the IRS does), if you have a way of selling the properties within a year of acquiring them. But then again, it appears the definition of a dealer could vary.

If the intent is to sell the properties (but not at the 35% tax rate), can you just rent the properties say for a year? and sell at any time after the year to avoid the dealer classification status? 

The market could go either way in the year so there is a risk in waiting that may cost more than the tax differential and renters could cause damage to property that may require more spending prior to sale but does selling the properties at some time after the year cure the dealer classification issue?