Many people ask – “is there an objective minimum timeframe that one has to hold a property in order to qualify for a 1031 exchange?” Strangely, the answer is no. The IRS seems to have hidden that piece of information by not articulating a bright line holding period in the code or in the regulations. What they say is that you have to have had an intention to use the property for a qualifying purpose of investment or business purposes. One of the important factors in determining if you had that requisite intent is how long you held it. So holding it for a long period of time can be a good fact.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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