How to go about setting up a 1031 exchange

[Pamela Booker]

If I sell my renovated bungalow inside a year of purchase, it's my understanding the 1031 exchange allows me to avoid high tax on the profit made due to the fact that the profit will be immediately invested in my next property??? Also, I have about a month of more renovation and will be flipping the property.... so when do a do a 1031...I'm supposing it's when a sell the home??? Need some advice. Thanks so much

[Bill Exeter]

Hi Pamela, Michael is right on the money (pun intended!).  The 1031 Exchange requires that you had/have the intent to hold the properties for rental or investment or business use.  Properties acquired to rehab and then flip are actually held for sale and not held for investment and therefore do not qualify for 1031 Exchange treatment.