Winter 2003, Vol 28, No 1

Abstract: Even the novice in real estate tax issues has heard the warning that one normally does not want to be classified as a “dealer.” A “dealer” is probably best defined as one who is involved in the sale of goods, not with the intent to hold those goods. That is, they are primarily inventory items, or goods primarily for resale—they are not for purposes of holding the assets for trade or business or for investment. This short note emphasizes three of the many important reasons why most real estate practitioners and taxpayers generally would not like to be classified as a “dealer” for tax purposes for a given piece of property.