I just completed a 1031 exchange in the beginning of this year. I exchanged for a single family house, renovated it, and am now renting it out. I have just come across a better deal and would like to exchange the single family house for this new property as soon as possible.
Can I complete another 1031 exchange even though my holding period for the single family home is just a few months? Would the IRS consider this to be house flipping and thus not valid?
Thanks for any help.
Well that was quick:) They must have answered their own question. Which would be something like the Dr. treating themselves. Or the attorney representing themselves.
For the good of the group who stumble in here - AC is dealing with an issue of intent. There is nothing that would be legally wrong with that scenario as long as their intent in the first 1031 was to purchase a property that they intended to hold.
If that's the case then the fact that they happened to find a new property already is a happy accident. And accidents can happen. The problem is that if accidents happen too often they stop looking like accidents.
If they feel like their treatment to date of the property satisfies as documentation of their intent to hold then a 1031 would be allowed.
It could be questioned if they were audited for something else. But I'd never tell anyone to do something just because they can get away with it. And you shouldn't not do something you can do just because you're afraid you'll get questioned about it.
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