Since I'm new on this platform, I realize that many on here do the conventional "fix and flips" - those aren't eligible for 1031 exchanges. Neither are developers. You must be a US real estate investor in order to utilize the 1031 exchange. What does that mean? Generally speaking an investor collects rental income and signs a lease with a tenant whereas a flipper or developer shows "inventory held for sale" on their books and gets all of their economics derived from a SALE.
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
2y
A developer, flipper, or wholesaler are considered to be "dealers" meaning they are like a store with product on the shelve, that they sell. Dealers cannot do 1031 exchanges, cannot do installment sales, and cannot take depreciation, all of which are reserved exclusively for "investors" who are not considered "dealers".