Posted by Natalie-VA on March 07, 2005 at 13:52:19:
Check with a CPA, but I think quick flips are considered dealer activity and not eligible for 1031 exchanges regardless of how long you hold them.
1031 On Quick Flip? - Posted by Chris Anderson
Posted by Chris Anderson on March 05, 2005 at 08:34:18:
I am curious if anybody here has experience with 1031’s on a quick flip scenario. These days, I am doing more and more preconstruction projects and flipping either before or after closing.
What I am hearing is that to do a 1031 for a property owned less than 12 months can present a problem. IRS claims you can’t do that but there is no tax law supporting them… However they still go after people when there is enough $ on the table to make it worth their while.
The major problem I see is that they typically come back at you about 3 yrs later wanting original tax, interest, and penalities but in the meantime, this money is now tied up in a new investment.
I really, really, really want to do this on a large gain that I am getting on my latest property but it sounds like a crap shoot. Anybody experienced in this?
Chris