Any business that frequently profits from the sale of an asset is classified as an active business. The profit you make could come from selling a vehicle, a piece of inventory, or even a real estate investment. Selling your own home and flipping multiple investment properties are two very different concepts in the eyes of the IRS.
Forbes reported recently that 55 percent of millennials are interested in real estate investing. That statistic itself isn’t as fascinating as other data suggested by the same survey. It turns out that a higher percentage of millennials than any other generations correctly identified real estate as the best performing investment class since 2000.