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1031 Exchange Question
Hello everyone.
Myself and two partners purchased a property towards the end of last year and did some light rehab to the building. Our plan was to sell it and then 1031 those profits into another property.
We are currently under contract now and closing end of the month.
My question is this: are we able to 1031 this profit into a standard rental? I’m asking because this first property counts as a flip and I know the IRS does not consider flips to be income. I believed that because the 1031 property would be a standard rental, we could use this strategy.
Am I wrong and we will have to pay taxes?
Cheers everyone!