Wednesday, 21 March 2012

How to deal with dealer issue

dealer issue on tax
The properties held for productive use apply rules such as capital gains, exchange rules and installment sales rules . If you are buying and selling real estate regularly, you may be considered as a "dealer" in real estate properties. A dealer is one who buys with the intent of reselling rather than for investment. The following are the some of the factors or issues for dealers in real estate market.

  • The purpose of the property that has been purchased.
  • How long the property was held
  • The sales tax paid by the taxpayer in that year
  • The comparison between the income of sale from one year to next year.
  • Number of deals the taxpayer did in that year
  • The amount of gain processed from the sale

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