Hi everyone, I have a friend that just recently flipped a house. Did a quick carpet and paint rehab and netted around 25K in about 40 days. He is being advised to 1031 it into another flip. I always understood that property needed to be held for atleast ( 1 year ? ) in order to be eligable.
Any advise?
Thanks,
DB
A 1031 exchange doesn’t apply to property flipping and there is no minimum holding period for eligibility.
The prior poster is right on the money. You must have the intent to hold property for investment (not for sale) in order to qualify for 1031 Exchange treatment. Buying and then flipping property is actually held for sale (investory) in your business and not held for investment. Here is a link that will help clarify further: http://www.exeter1031.com/holding_guidelines_for_1031_exchange_property.aspx