A few f them also cash flow.

c) Exceptions The term ''personal holding company'' as defined in subsection (a) does not include - (1) a corporation exempt from tax under subchapter F (sec. 501 and following); (2) a bank as defined in section 581, or a domestic building and loan association within the meaning of section 7701(a)(19); (3) a life insurance company; (4) a surety company; (5) a foreign corporation, (6) a lending or finance company if - (A) 60 percent or more of its ordinary gross income (as defined in section 543(b)(1)) is derived directly from the active and regular conduct of a lending or finance business; (B) the personal holding company income for the taxable year (computed without regard to income described in subsection (d)(3) and income derived directly from the active and regular conduct of a lending or finance business, and computed by including as personal holding company income the entire amount of the gross income from rents, royalties, produced film rents, and compensation for use of corporate property by shareholders) is not more than 20 percent of the ordinary gross income; (C) the sum of the deductions which are directly allocable to the active and regular conduct of its lending or finance business equals or exceeds the sum of - (i) 15 percent of so much of the ordinary gross income derived therefrom as does not exceed $500,000, plus (ii) 5 percent of so much of the ordinary gross income derived therefrom as exceeds $500,000; and (D) the loans to a person who is a shareholder in such company during the taxable year by or for whom 10 percent or more in value of its outstanding stock is owned directly or indirectly (including, in the case of an individual, stock owned by members of his family as defined in section 544(a)(2)), outstanding at any time during such year do not exceed $5,000 in principal amount;"

I manage some properties in D/F type areas where some of the tenants don't have bank accounts.

I looked them up on the BBB and they have an F rating and 152 complaints in the last 36 months and they got so bad that the government looked into them.

Ive been wanting to become more active in REI' ing.

Dayo F OsibamowoSpringfield IL

Originally posted by Annelyse F.

Comm’r [615 F.2d 226, 45 AFTR2d 80-1248 (CA-5, 1980)], “a single transaction ordinarily will not constitute a trade or business when the taxpayer enters into the transaction with no expectation of continuing in the field of endeavor.”However, to my point, if he engages in flipping again, the IRS could hold this sale as part of his ordinary trade or business.

@Colleen F. has asked some very good questions to explore.It's fine if you decide this track isn't for you - it's definitely not for everybody.  

@Mark Solomon I completely agree with @Bill F.