@Carl wrote:
Note that if you rent out the property for even one single day for any purpose, then you are "not" in the business of buying and selling houses. (At least not for that one house.)
Actually, rental of the property is irrelevant to the issue as to whether the taxpayer is in the business of buying and selling houses (i.e., whether the taxpayer is a real estate dealer):
Do not use Schedule E to report income and expenses from rentals of real estate you held for sale to customers in the ordinary course of your business as a real estate dealer. Instead, use Schedule C for those rentals.
