Rent received by real estate dealers. Rent received by real estate dealer. Rentals from real estate being held for sale in the ordinary course of a trade or business are earnings from self-employment. The profit a dealer gets from selling the real estate is also earnings from self-employment.
Real estate is a dealer's stock in trade.
As a real estate dealer, you are available to buy and sell property and are regularly engaged in negotiating sales of property that you own. Property held by real estate dealers for personal use or as investment is not held for sale. Rentals received from such property are not considered earnings from self-employment because they are not received in the regular course of a trade or business.