I was always under the impression that dealer status was something like 7 to 10 transactions a YEAR that were taxed at ordinary income rates...

You need to track all your items separately.If you own a $700K house I'm guessing your AGI is to high to be using the passive loss this may create from your ordinary income.

I have a lot to learn about that also, wondering if I have to put the profits back into the 401K or can I withdraw them like an ordinary 401K and pay the tax on that....I'll be keeping my CPA busy for while!

If the seller finance they do not pay the capital gains until they exceed their cost basesthis is calculated based off principal payments received but the interest is taxed at ordinary income.

Moreover the payout is not taxed like ordinary dividends at 15% but as regular income.If I do find any interesting REITs that I plan to invest in, I will post my analysis on this thread.Do you have any REITs in your portfolio?

., 578 F.2d 520 (4th Cir. 1978) which deals with deducting expansion costs as ordinary expenses when one's activity rises to the level of a trade or business.

This is out of the ordinary for me. 

Does it mean the 50k commission income has to be taxed our ordinary income tax rate 24%, plus the self employed tax which is about another 15%? 

Thanks Brit, that's what I figured.

A lot of Brits have rentals there and it seemed like a lot of stuff on the market that was for sale were owned by...Brits.