Avoiding "dealer" Status When Selling On L/O
Who here has been selling on L/O's for years that has successfully avoided being labeled by the IRS as a "dealer"
Especially anyone who has been through an audit, had it brought up and dismissed, what were the comments made, and what is your mix of activities (do you ALWAYS sell on L/O, or flip occasionally, etc.)
I seem to be noticing two camps of investors with regards to taxation... those who barrel down the highway as clear-cut dealers, and those who go to great pains if necessary to avoid the designation. I'm just trying to figure out how solid the protection is by using L/O's as your primary exit strategy.
Related note: Who is selling on L/O and using 1031 to roll into the next property? Any insights there?
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