Hold Time is One of Many Facts Supporting a 1031 Exchange

Hold Time is One of Many Facts Supporting a 1031 Exchange

admin June 1, 2019

Originally posted by http://feedproxy.google.com/~r/1031ExchangeBlog/~3/6-9-6GJ09LU/hold-time-is-one-of-many-facts-supporting-a-1031-exchange

One of the many questions that people ask a Qualified Intermediary of 1031 tax deferred exchanges is how long the relinquished property needs to be held to qualify for a 1031 exchange? The answer represents one of many ways to develop a fact pattern that supports a 1031 exchange. As you recall, a 1031 exchange allows the taxpayer to defer or postpone the payment of federal and state capital gains and depreciation recapture taxes, when real property held for the production of income for a business or investment is replaced with real property of equal or greater value than the relinquished property’s net sales price. What is not eligible for tax deferral treatment is a primary residence, Section 121 transaction, or second home.

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