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1031 Exchanges apply to property you intend to buy and hold, not to property you intend to resell. We're often asked "How long do I have to hold a property before I can resell it?" Here are two fictitious examples to illustrate similar situations with different outcomes.
Jack got lucky. Jack bought a property for $100,000 intending to hold it ten years until it doubled in value. After just three months someone offered Jack $200,000 for the property. A very short holding period. Can Jack sell and exchange it again? Yes. The justification is that Jack got lucky and it hit his target objective quickly.
Re-Sale Inventory. Bob bought a property for $100,000 and immediately listed it for sale. Can he do a 1031 exchange into the next property? No. Re-listing it documents that Bob didn't intend to hold it. Property acquired and held for re-sale is considered inventory and doesn't qualify as "like kind" for 1031 property.
We'll all likely sell our property someday but when the dates and frequency draw too close it creates issues. The like-kind 1031 exchange form was modified a few years ago, it now asks: "Is the property being exchanged property that was acquired in this tax year as a result of a 1031 exchange?" "Yes or No." No is always best.
Talk with an exchange facilitator today for answers specific to your situation.