Diane Kennedy
Bronze Contributor
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- Aug 31, 2007
- 780
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I'm just jumping in on 1031 rules.
There is no clear-cut time that you need to own the property that you 1031 out of. The definition is that it needs to be an investment property for another investment property. My CPA firm generally takes the position that the definition of investment property (in other parts of the Code) is holding a property for one year. But, things happen and plans change, even if the intent was to have an investment property. So, if the property you exchange out of is held for less than one year, we take the position that as long as the property you exchange INTO is held for one year or more, you have a valid 1031 exchange.
You have 45 days to identify the properties that you will exchange into. You must complete the exchange within 180 days.
There is no clear-cut time that you need to own the property that you 1031 out of. The definition is that it needs to be an investment property for another investment property. My CPA firm generally takes the position that the definition of investment property (in other parts of the Code) is holding a property for one year. But, things happen and plans change, even if the intent was to have an investment property. So, if the property you exchange out of is held for less than one year, we take the position that as long as the property you exchange INTO is held for one year or more, you have a valid 1031 exchange.
You have 45 days to identify the properties that you will exchange into. You must complete the exchange within 180 days.