Do You Invest in Real Estate? Here Are 9 Reasons the IRS Might Call You a Dealer

In this episode of The Exchange Brothers, David and Tom delve into a crucial topic for real estate investors: determining dealer status and its impact on completing a 1031 exchange.Using the Klarkowski Court Case, they walk through the 9 IRS factors that help identify whether a property is held for investment or resale, and what that means for your tax strategy.Common misconceptions about holding periodsWhy intention matters more than timeReal-world scenarios of investors getting tripped up by dealer statusThe risk of converting capital gains into ordinary incomeHow your business activities and property use can make or break a 1031 exchangeWhether you're flipping homes, holding rentals, or planning your next exchange, this episode is packed with practical insight and expert commentary.📞 Have questions? Contact David and Tom at www.1031exchange.comSend us Fan MailThanks for listening! Subscribe to get all of the latest tax news and information.