One year rule before selling?

[Shuai Zeng]

So I purchased a property at Tampa, FL last month. I'm planning to renovate it this coming month. I was told by the general contractor that I need to wait a year, after I fixed and make things newer to sell it per state law. I have never heard a year rule anywhere, have u guys?

[Jon Holdman]

Originally posted by @Eric Odum:

There is also the wives' tale about Section 1031 exchanges ......that you need a year to hold to sell to be eligible.  There is no such rule or even precedent in IRS code, but it is a rule of thumb investors use to consider.

The key is intent.   If you buy a property with the intent to hold it then even if you hold it for less than a year it would still be an investment and eligible for capital gains tax treatment or a 1031 exchange.  Conversely if you buy with the intent to resell its ordinary income and not eligible for a 1031 even it you end up holding it for more than a year.