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Hello I've a question about real estate taxes. I understand that if
you buy and flip houses, or buy and quickly sell many houses, the IRS
may consider you a "real estate dealer" and tax you at ordinary income
rates vs. long term cap gains rates, even if you hold the property for
more than 366 days.
Now, could you avoid being personally classified as a "dealer" if you
formed an S-corp with its own tax ID # for each property you own? Let's
say you want to purchase 5 houses and sell them after 18 months. Each
house is owned by a separate S-corp so would they all be separate sales
and not 5 at one time, thus avoiding "dealer" status to you personally?
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s-corps to avoid dealer status?
