1031 exchange On a quick flip?

[Joseph Kirk]

Hey everyone,

I purchased an off market fix-and-flip property in NJ, on March 10 using hard money and plan to list it on the market by the end of April. I'm wondering if I can utilize a 1031 exchange when I sell it to defer capital gains taxes.

From my understanding, 1031 exchanges are typically for investment properties held for rental or business use, but I'm curious if there's any way my flip could qualify—especially since I haven’t sold it yet. Would holding it for a short-term period automatically disqualify me, or are there strategies to structure the sale to make it eligible? 

I’ll likely be using hard money again for my next purchase. 

Has anyone successfully done a 1031 exchange with a flip? I know the rules that i need to purchase a new house more than i sell this one for, and within a certain amount of days. Any insights or advice would be greatly appreciated!

Thanks in advance.

[Shawn Mcenteer]

Hi @Joseph Kirk my understanding is property must have been used for rental/business for 24 months.  Where is property located and do you need liquid cash right away?