Do I Have To Wait A Year To Do A 1031?
I have just had my first offer accepted on an investment property. Woohoo! I had planned to rehab and then sell right away and invest my gain into more properties thus postponing taxes via a 1031 exchange. But then I read that I must hold that property a year to do this.What do investors do that just want to flip properties?
If you're flipping, the properties are considered inventory, and not eligible for 1031, as I understand it.
If you put a tenant in the property then you would be elegible for a 1031exchange. I got the OK from a 1031 Qualified Intermediary to do an exchange after I purchased a preforeclosure and decided to sell because the renter I had lined up fell through. I was told that having intent to rent it was sufficient and was also told I could exchange immediately.[ Edited by edmeyer on Date 01/20/2005 ]