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Updated almost 16 years ago,

User Stats

1,493
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268
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George P.
  • Real Estate Investor
  • Baltimore, MD
268
Votes |
1,493
Posts

Being flagged as a 'Dealer' by IRS - for this strategy?

George P.
  • Real Estate Investor
  • Baltimore, MD
Posted

Business entity - one member LLC
Strategy: contract assignment and contract assignment with short-term (one year or less) financing provided by the entity to the end buyer/rehabber.

Are there risks of being flagged as a 'dealer' for using the above strategy?

Perhaps this won;t be an issue if LLC is taxed as a corporation (self-employment taxes will be not applicable) if for this or another reason the LLC is flagged as a dealer?
Thank you for your input!!!

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