Am I a business or an Investor? Can I decide?

[Summer Segeleon]

Doing my own taxes this year (hopefully), as I usually do. I have only one property sale to claim. Can I decide on my own whether or not I'm a business or an investor? 

* Purchased in 2014, sold in 2015 for a profit. Owned less than 1 year. This was my first investment property purchased

* Never lived there. purchased with intent to sell

*Now own one another property that is under renovation

It seems easier to simply call it a business, deduct the expenses, and pay whatever i must, rather than deal with depreciating things. Is there a reason why this isn't advisable , other than the percentage that I'll end up paying

[Brandon Hall]

@Summer Segeleon I recommend not doing your own taxes and speaking with a CPA.

Investor vs. Business owner will make a great deal of difference. If classified as a dealer (business owner) your flip will be subject to your ordinary rates plus SE tax (15.3%).

If an investor, you avoid the SE tax.

Generally if you establish a pattern of flipping, you will need to report your sales as inventory subject to SE tax. If your property is considered inventory, you lose access to a lot of tax efficient ways to dispose of the property.

What is your intent on the property you have now?