Am I classified as a dealer or investor for tax purposes?
Bought a house July 2018, 6 houses down from my primary residence with intention to rent. I figured I would clean up and hire pros for some little repairs and put it up for rent asap. However after having one expert after another (plummer, HVAC, Tile layer Hardwood restorer, etc.) keep saying I should do this or that the right way etc., I decided I should just sell for fear of renting a house with “all New stuff” (carpet, tile, vanities, counter toliets etc. I had spent about 20,000 instead of 3,000 leaving me with high credit card debt so sold the house in March of 2019 for a profit of about 20,000. This was the first and only time I have ever sold a house. I have no intention of doing it again. I did not participate much but did get estimates and oversee work etc. Everything I read is grey regarding my specifics. Having for less than a year and not living in leans toward dealer. Having never done before with no intention to do again leans toward investor. Any help?
Dealer of what? If you spent $20k on repairs and sold it for $20k more than the purchase price, no matter how you qualify yourself, you didn’t make any profit. Thus, you shouldn’t really pay capital gain taxes on that, but only report all of that.
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