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1031 Exchanges

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George P.
  • Real Estate Investor
  • Baltimore, MD
267
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1,493
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Tax lien --> Foreclosure --> 1031 ?

George P.
  • Real Estate Investor
  • Baltimore, MD
Posted Jul 11 2014, 06:00

Good day y'all

Here is the scenario.....

I bought a tax lien in 2011, almost three years later I have obtained the judgement on the property and eventually the deed will be recorded into my name. 

Q: Can I sell this property and 1031 it into a rental in a nicer area? 

My holding periods are as follows: tax lien - appx 3 years, property itself - a few months.

My original intent was to invest in the tax lien and collect interest. I do not want to hold this property. I hope to get rid of this property and avoid paying short-term capital gain by rolling it into a property in a desired area.

Thank you in advance

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