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Do "flippers" who buy investment property, don't rent the…

Do "flippers" who buy...

Do "flippers" who buy investment property, don't rent the property qualify for the 1031 exchange?

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Do real estate investors qualify for 1031 exchange who are "flipping homes"

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Answered in 5 minutes by:
3/25/2018
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 5,802
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

IRC Section 1031(a)(1) states that property that is "stock in trade" or "held primarily for sale” is specifically EXCLUDED from the benefits of 1031 exchanges. According to the Code, property that is held primarily for sale, whether to customers in the ordinary course of business or otherwise, is not property that is held for investment, and therefore, not eligible for 1031 exchange.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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Customer reply replied 1 month ago
Wanted a second opinion. The investment is considered "inventory" pending a sale per code
Customer reply replied 1 month ago
Thanks for your help

My pleasure.

See the following for additional information that my be helpful:

https://firstexchange.com/houseflipping

My goal is to provide you with excellent service. Please take a moment to rate my answer with a 5-star rating to let me know that I have achieved my goal.

Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 5,802
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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