Tax question for wholesaling/flipping and assignment of contracts
My husband and I have a newly established LLC (taxed as an S-Corp as recommended by our CPA). He does a combination of contract assignments and wholesale deals. We are currently doing our first rehab project and expect to have it finished and sold within the next 3-6 months.
Is "dealer status" inevitable?"Would he/our business have dealer status on all of the income generated? Or just on deals we close on and resell (wholesales/rehabs)?
This is all incredibly new to me. He has been doing real estate for years but just started working for himself and not someone else. Any insight is greatly appreciated!