Do you know the difference between a real estate investor and a dealer? The IRS does, and they hit dealers with huge taxes, penalties and interest. Here are some tax advantages investors have:
- Favorable tax treatment for seller financing
- 1031 tax deferred exchanges
- Long term capital gains tax rates
- No self employment taxes on profits
Dealers get NONE of those things.
Download our free article HERE to learn more about this subject, and the kinds of things that will cause the IRS to treat you as a dealer. With advance warning, you can arrange your affairs so you avoid dealer tax status. Don’t wait until you are audited to learn about this topic.