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Updated almost 4 years ago,
Calling all accountants
Ok I am in between a battle of 2 accountants for my tax return for 2020
one is telling me 100% the IRS will see me as a dealer and all profits will be taxed as regular income including the 15.x self employment tax
The other says NO I’m an investor and should pay under long term capital gains because I have owned all the land for over a year
I have 5 mobile homes purchased in my name no LLC NO S CORP NADA on land I am selling this year
4 were purchased 2 + years ago
1 purchased 3 months before I am selling it
2 were rented out part of 2020 but NOT before that The other 3 were never rented out sat vacant for 3 years while I fixed them up
3 were really bad condition/unlivable and I fixed them up.
2 I actually had moved onto vacant land I owned the vacant land for 3 years The houses themselves I bought a little over a year ago
Profit on each average 80k
I believe they are BOTH wrong
what say you?