Updated almost 8 years ago on . Most recent reply
1031 options and timeline
I closed on a what was essentially a wholesale deal on June 23 of this year. It was a residential property bought by my LLC for investment purposes. I owned the property for about 3 hours before I listed and sold it 30 days later (June 23). It was an estate sale I got at deep discount, and upon closing, decided I could do just as good by listing at market value instead of improving and selling...
I'm currently in contract to buy a small commercial building set to close in January. However, the 1031 option just finally came to my mind (I'm still fairly new at REI)... The question is, Is it possible to treat this as a 1031 if I close before Dec 23? That would be 6 months from the date of sale of the residential property.
If yes or no, could anybody elaborate on why and how?
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#1 Foreclosures Contributor
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#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
Nope, not a chance.
1) The sale of the first property has be handled thru a QI, You can not touch the money.
2) A flip does not qualify for a 1031, only properties held for long term investment.