From my understanding (in p.a.) it must be an investment property for a year than you must do a 1031 (which is started before the agreement of sale is signed) and you tax defer it into another property of equal value or greater, which is also held for a year. Some people wait 6 months,cash out refinance and then move on.If you have a property already picked out before you settle on the first, you can do a simultaneouse exchange by using a good tax attorney.On a 1031 (after you settle on your original property)you have 45 days to locate a property and you must settle on it no later than the 180th day. That’s how they work in p.a.
( you can turn an investment property into a primary residence after holding it for a year after the exchange)
Does anyone know the minimum holding time for a 1031 exchange?
example: If I buy an investment property and sell it in 2 years will that qualify for an exchange?
I realize there are numerous criteria that have to be met in order to accomplish that transaction.
There is nothing in the tax code specifying a period of holding. The intent of holding the property for production of income or as an investment is the important thing. Some CPA and attorney advisers suggest over 1 year, some say over two years, some suggest that the buying and selling be in two different tax years.
But why would you be buying and selling so soon? If you buy for the long term, this question probably shouldn’t be coming up, should it? I guess the only reason I could see doing this is if you are moving and want to buy properties closer to where you will be living.
Your post does not specify if the apartment building you are referring to is a property you will relinquish or a replacement property.
I don’t believe an exact time frame is specified. Reliable, experienced investors have stated that replacement property should be held at least two years to avoid IRS complications.