Real Estate Dealer Tax Tricks | USTaxAid

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Real Estate Dealer Tax Tricks

Written by Diane Kennedy, CPA on February 21, 2012


What’s on the mind of real estate investors today? This past Saturday Megan & I did a webinar on real estate investing tax and asset protection solutions. Here are the questions we had regarding people who suddenly realized that their wholesaling or fix-n-flip properties meant they were a real estate dealer, not a real estate investor.

We got flooded with questions. Here are some of the questions that we didn’t get a chance to answer during the 60 minute webinar, along with the answers.

Q: What is the best entity structure for RE Dealer?

The Real Estate Dealer status means your real estate will be treated like a business. The best structures for businesses generally are the S Corporation, C Corporation or an LLC that has elected S Corporation or C Corporation tax.

The entity won’t solve the problem we talked about on the webinar “Real Estate Deductions You Can Still Take”

Q: After creating the LLC how long does one have to do the S-corp tax treatment election?

The best way is to file for S Corporation treatment within the first 75 days (2 ½ months). However you do have up until you timely file your tax return.

Did you catch this past Saturday’s real estate webinar? If you missed it, you can listen for free at

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