1031-Showing "Intent To Hold"
I am a rehabber. I fix up properties and then re-sell them. What ideas do people have to prove my intent to hold them for a 1031 exchange? How long do I need to hold them? Any sources/books, etc. I can read to help me with this part of the tax code?
Thanks!
Your intent to hold is shown not by the length of time you have the property but your intent to use the property as an investment in business or as a rental.
View this thread http://www.thecreativeinvestor.com/residential/ViewTopic45182-23.html for a detailed discussion.
It all boils down to your INTENT. You state that your intent is to sell, therefore you do not qualify for 1031 exchange treatment. It does not matter how long you hold the property. So, the key is that under audit you must be able to demonstrate to the satisfaction of the auditor that you had the INTENT to HOLD the property for rental, investment or use in a business.
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Refer to this article entitled "Holding Requirements for 1031 Exchange Property" posted on this web site: http://www.thecreativeinvestor.com/commercial/modules.php?name=Articles&file=article&articleid=572
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