Flipping New Construction Properties And Tax Implications
I have a 1031 exchange question concerning re-investing the gains from the sale of a new construction home. Contract date was almost 14 months ago, but hope to own for only 3 months, depending on length of time to sell. Purchased soley for investment purposes and appreciation from the time of contract to completion. Is this allowed under a 1031 assuming time period, like kind and everything else are followed?
My understanding is that you have to hold the property for at least a year before it qualifies for participation in a 1031 exchange. If I am correctly reading your scenario, you will only own it for 3 months. The contract date is irrelevant for determining if the property qualifies--closing date (i.e., date you take title) is when the clock starts ticking.