Real Estate Dealer vs. Investor: Why It Matters
In basic terms, real estate investors purchase real estate with the intention of holding the properties to gain financial return. On the other hand, real estate dealers typically acquire and sell real estate in the ordinary course of their trade or business. The determination of investor vs. dealer is mainly based on intent and activities at the time of purchasing the property and the point of selling the property. For example, if a taxpayer buys a real property that needs improvements, renovate it, and sells it for profit, it is most likely that taxpayer is going to be considered a dealer.
https://ccnbusiness.com/2024/09/21/real-estate-dealer-vs-investors/
Real Estate Dealer vs. Investor: Why It Matters
In basic terms, real estate investors purchase real estate with the intention of holding the properties to gain financial return. On the other hand, real estate dealers typically acquire and sell real estate in the ordinary course of their trade or business. The determination of investor vs. dealer is mainly based on intent and activities at the time of purchasing the property and the point of selling the property. For example, if a taxpayer buys a real property that needs improvements, renovate it, and sells it for profit, it is most likely that taxpayer is going to be considered a dealer.
https://ccnbusiness.com/2024/09/21/real-estate-dealer-vs-investors/