Tax guy is saying I can't claim a property I held more than a year as capital gains

[Jeff Wilson]

Instead he is saying I need to claim it has self employment income since it was not a "one time only situation". This is a fix and flip that I loaned money to. I have performed 3 other fix and flips and am continuing to do them.

What have you done or what would you do? Would you claim it as a capital gain or not? Why?

Thank you for any help you can give.

[Steven Hamilton II]

Jeff Wilson,

I don't want to sound rude, but how the heck don't you know what kind of deal it was or what this person was to you? It was your money. Did you sign the paperwork at the closing? Did you have to sign for it to sell?

What was done to the property?

All in all though it does sound as I said since you were on title you are in a JV, that means ordinary income tax rate NOT capital gains.

-Steven