If you invest in real estate, ask yourself this vitally important question…
“Am I a real estate ‘investor’ or a ‘dealer?’”
How you answer this question can have huge tax consequences. For example, in a recent case, Mr. Donald Flood filed his tax return expecting to pay $240,000 in federal taxes at the 15% capital gains rate that applies to real estate investors. But the Tax Court ruled that Mr. Flood is a dealer, so instead, he had to pay $688,000 at the 43% dealer rate — an increase of $448,000!
Don’t let this kind of thing happen to you! Find out now about the classification traps the IRS is setting for you and how to avoid them. You’ll get the whole story when you read my new article titled Tax Tips: Ouch! Court Rules That This Investor Is a Real Estate Dealer.
Three ways our fact-filled article can help you:
- We’ll list the nine factors that determine whether you’re considered an “investor” or a dealer.” It’s extremely important that you know what these factors are. Now is the time to get this vital information — Not when the IRS comes calling. You’ll get the details when you read the full article.
- We’ll explain the significance of “development and improvements.” The more you do to improve your property in a manner that increases its sales value, the more you look like a real estate dealer. Which can be dangerous. We’ll give you the facts when you read the full article.
- We’ll tell you why advertising your property can cause you problems. Big problems. You see, if you want to look like an investor it helps if you can avoid sales efforts and, instead, sell your property privately and without an agent. We’ll tell you the five factors that worked against Mr. Flood when you read the full article.