Limiting Tax liability as a flipping company

[Matthew T.]

I started another LLC in 2017 with a focus on wholesaling and flipping homes. We held nothing in this company and sold everything no longer than 5 months. Our CPA is saying we will be classified as a dealer/trader and subject self employment tax on the first 150k then regular short term capital gains tax. We did well over the 150k and are setting up to double or triple in 2018. My question is what do other large scale wholesalers and flippers do to minimize their tax liability? One of my partners is suggesting renting for 366 days then selling about 50% of our housing stock to save short term capital gains on most and then we would not be classified as dealer/traders. We do have a decent profolio of rentals already I just would hate to add more to the mix that are short-term. Then we would have to worry about more turnover and what if the market corrects? Hope to have a great discussion. Thanks Landlord Ninja