M-MTax
Level 12

Investors & landlords

Did I read your question correctly?

 

If you're a dealer, then your real properties (real estate) that you buy to flip for quick profits (hopefully) are considered inventory and the gains/profits on those transactions are considered ordinary income, not capital gains (either short or long term). Similarly, losses on sales are considered as ordinary losses, not capital losses.

 

If you're a single-member LLC, those transactions would wind up on Schedule C as sales of inventory.