Quick Flip & 1031 Exchange

Can I do a quick flip on a property (actually held title for 7 days), pull $30,000 profit out of it .... and then do a 1031 exchange and purchase another investment property of greater value in which I will lease option it to a tenant/buyer?

THX

Comments(3)

  • j_owley30th March, 2004

    all the ducks would have to be in a row

  • InActive_Account30th March, 2004

    You cannot take cash out when doing a 1031 exchange. All the money must be reinvested in the new property.

  • DaveT30th March, 2004

    No. A 1031 exchange does not apply to dealer activity.

    Best to bring your tax questions to the Tax Forum

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