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In a 1031 exchange, how long do the clients have to own the property before it is exchanged for another property?

tamurack
Level 2
 
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TaxGuyBill
Level 15

I would say at least an hour.  :smiley:

As long as there is some evidence that it is used for business (or the intent for business use) there isn't a holding limitation.

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TaxGuyBill
Level 15

I would say at least an hour.  :smiley:

As long as there is some evidence that it is used for business (or the intent for business use) there isn't a holding limitation.

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Marc-TaxMan
Level 8
There was a case a dozen years ago where a guy did an 1031 and then received an unsolicited high offer to sell his new property.  Ruling was that he acquired the new property with intent to sell, not to hold, so he lost his 1031
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abctax55
Level 15
Yep...and this is the topic of a recent thread on a different list-serve.  I *think* in that one, the high offer to sell actually happened while the properties were in escrow.
@tamurack  - more details, please.
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tamurack
Level 2
The property was acquired about 18 months ago and has been a rental property.  They are going to exchange for another rental property to be built on acreage that they already own.
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abctax55
Level 15
18 months should be just fine...

Does the land/acreage price equal the net selling price of the rental?  If not, the construction cost during the 180 time frame *will* qualify but finding an intermediary to handle it may be difficult.
(I wanna be a member of the pot stirring club too)
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George4Tacks
Level 15
http://www.exeter1031.com/construction_1031_exchange.aspx May make for an introductory reading for what you describe.

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George4Tacks
Level 15

I agree with TGB. 

FYI Here is a free one hour CE starting in just a few minutes

 https://www.cpaacademy.org/webinars/a0D4400000QlIZMEA3


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