@Randa C.

Scott Matthew C.

They are in C- neighborhoods.

@Brian C.

I recently ran across a similar court case where the IRS took issue with this (thought I think the facts are slightly different).If it's a single member LLC, what business activity code would you choose on Schedule C when you report the income?

I'll be going to the meetup that @Steven C.

I own b@c properties and I find new construction to be my best friend.....I also have shook my head at some big multi purchases..

@Rich Hupper it depends on how you file your taxes (if you file as a sole proprietorship, s-corp, c-corp, etc).

Your profit will be treated as Capital Gains.But it will be Short Term Capital Gains instead of Long Term Capital Gains because you owned the property for less than one year and a day.You will report the transaction on Schedule D, Capital Gains and Losses, and not on Schedule C, Business Income, because buying and selling one house does not make you a dealer.That means that you will not be subject to Self Employment taxes.The tax rate that you will pay on Short Term Capital Gains will be the same as your ordinary income tax rate.I hope this helps.Good Luck.Michael Lantrip

Hi Ken M. the property was built in the 90's, therefore, it already has a C of O.