Referring to IRS fact sheet 2008-25 my interpretation is I am not required to classify any of that income as salary as long as I don't distribute it.

After reading a couple books and scouring the classifieds day and driving for dollars, we've purchased a 10K lot with 1K down, owner financed and are now purchasing a mobile home and having it moved on site. 

@Dawn Anastasi Last week, I just did a qualitative survey of rental listings in online classifieds including Craigslist in three of our local markets.  

What would flooring be classified as? 

I would classify my knowledge as weak in the tax realm. 

I'm not trying to figure out how to tell whether something would be classified as a depreciable expense or a one-year write off. 

Its the old saying garbage in garbage out, if you are not properly classifying your costs the reports tht come out of this will be of no use.

If classified as a dealer (business owner) your flip will be subject to your ordinary rates plus SE tax (15.3%).

This is what I found via TurboTax:How the IRS classifies cancelled debtYou might consider it unfair that a debt you successfully cancel or negotiate away comes back to haunt you as taxable income.

If you want to fund your business, transfer the funds from your personal to your business account yourself, and be sure to classify it as an equity infusion or a note/loan.