Since the classification of “like-kind” property is so broad, the 1031 rule is a powerful tool to diversify your portfolio while deferring tax payments.By not paying taxes at the time of sale in exchange, investors have a lot more capital to work with and can bid for higher-value properties through an exchange facilitator.

Or is some requirement to obtain a "sophisticated" classification required first?

Separate meters and separate addresses are a guideline in the determination of an ADU or duplex classification.  

I was speaking in aspects of doing a sales job to get a feel, while earning vs taking a marketing class..if that makes sense??

Being an REP shouldn't have an impact on the classification between expense or capitalized expenditure.

If you do not wish to accept the default classification of partnership, you can:File Form 8832 (Entity Classification Election) to elect corporate status, orFile Form 2553 (Election by a Small Business Corporation) to elect S corporation status.If you need to change your type of structure, we recommend that you do so now, otherwise you will have to start over and re-enter your information.

Just trying to figure out which classification would be the best.

-What is your entity classification for Flipping entity and Buy and hold properties?

Jonathan, thank you for the reply.5 - 20  door commercial properties is the type of mf  I will concentrate on ( b and c class). If

-the seller should collateralize the note with the property (although the construction lender will want the note subordinated), pay off the loan (in addition to regular payments) with release fees as each lot is sold, and make sure the interest is paid (not accrued) regularly.Your issue is classics dealer vs investor issue.Note: Classification of gain as capital or ordinary is determined property-by-property, based on the statutory determination of whether the property is a capital asset or property held for sale to customers in the ordinary course of business.