@Skywalkerllc wrote:
Single member LLC. Several property flips for year 2022. Short term capital gains....
You initially need to determine whether or not you would be considered a real estate dealer as opposed to an investor in real estate.
If the properties were being purchased and repaired/improved, primarily for sale to customers in the ordinary course of business, then the gain is not capital gain but ordinary (earned) income and subject to self-employment tax. The profit would be reported on Schedule C of your individual income tax return.
@Skywalkerllc wrote:
1031 was not an option due to the nature of the rapid real estate transactions.
Section 1031 would not be an option if you are considered to be a real estate dealer with respect to any properties since that section does not apply to inventory.
See https://bradfordtaxinstitute.com/Content/Defining-Real-Estate-Investor-and-Dealer.aspx
