What is your tax question regarding this transaction?
Are you planning on selling this property right after purchasing it?
Hello again Levin,
Unfortunately your holding period of a property starts with the day you acquired the property, and not the date that escrow was opened.
To determine how long you held the investment property, begin counting on the date after the day you acquired the property. The day you disposed of the property is part of your holding period. That being the case, you would not yet qualify to treat this sale as a long term capital gain.
I am giving you a link below to IRS Publication 17 which defines the holding period for property.
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Before I accept your answer, please tell me why the following doesn't apply:
It is absolutely vital that you realize the buy and sell date the government uses to determine the length of time you held the asset is the trade date (the day you ordered your broker to buy or sell the investment), not the settlement date (the day when the certificates changed hands).
The statement you have quoted above applies to trades of stocks and bonds, but not to real property.
The reason for that is that the trade date of a stock or bond is actually a firm committment to buy that stock. Once you have executed a trade, you are legally locked in to making that purchase or sale. Also, the settlement date generally follows within one or two days following the trade date, and does not cover a 12 month period of time.
The start of the holding period for real property is clearly defined by the IRS as the day after you acquire the property.
I wish I could give you the answer you are looking for, but these are the IRS rules.