avoiding dealer status

You must be logged in to reply to this topic.

Viewing 2 posts - 1 through 2 (of 2 total)
  • Posts
  • I hope to be a passive investor with passive income, like by being the bank (seller financing) for instance, of which I am a complete newbie.

    I have several questions in no particular order I’d like to ask you.

    1.The whole “INTENT” of buying these properties would be to immediately turn around and resell them to a new buyer. Given that, how do you avoid dealer status, And the tax consequences that go with being labeled a dealer?

    2.Can dealer status be avoided by lease optioning the property for a minimum of 12 months and one day, even though the actual intent is to eventually sell them the property?

    3.Is there a way to classify this as an “investment” and not a “business”?

    4. Can the dealer status issue be avoided by using a title holding trust(land trust) and simply changing who holds the beneficial interest of the trust?

    5.In that you are converting something from real property to personal property and thus avoiding the “real estate” issues by using a title holding trust, does that avoid such issues as transfer tax and dealer status issues?

    I may very well have more questions, but thank you for your time and help. I look forward to hearing from you.


    Scott Wood

    HI Scott

    If your intent is to quick turn these properties then you are running a business. They are not investments. Don’t let the business status stop you.

    We have a lot of training about dealer status, Land Trust and how to structure your business to minimize taxes. Check out the Premium Member section on Asset Protection.


Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.