Product vs Service

[Elliot Larkin]

Does having tenants (being a landlord) constitute offering a product OR a service?

[Daniel Chang]

@Elliot Larkin

Technically it's both.  But for tax purposes, it's more a service.  Rehabbing/flipping is more of a product.  The houses are seen as inventory by the IRS, and you are selling your inventory to users.  Landlording, there is no inventory, there's no COGS (cost of goods sold).  Hence it's more of a service.