Intent Is Not The Same As Being Engaged
What Constitutes a Trade or Business?
A group of friends decided to start a business of flipping homes. Generally, the business model is to find a property in need of TLC in a neighborhood of more expensive homes, immediately begin to make repairs and improvements to the home so that its amenities are attractive to buyers, and then sell (flip) the property at a gain.
To that end, Mr. Samadi became a licensed real estate agent and the group decided that he would manage any investment properties that were purchased. He identified properties that he believed his group would be interested in purchasing and drove the members of the group in his vehicle to inspect these properties.
On his personal tax return, Samadi deducted [Read more…] about Intent Is Not The Same As Being Engaged – What Constitutes a Trade or Business?