1031 in MA

[Mike Fitzpatrick]

Hey guys, I feel like I've asked this question a million times and the answer is no. But I want to minimize my tax burden on a house I am in the process of flipping. I am only planning to hold the house for 3 months and I am going to reinvest the profits into a multi family or another flip. Ideally id do a 1031 exchange but does anyone know on the requirements for holding and renting it etc? Any other tax saving strategies that have worked for you? I am in the Massachusetts area. Thanks, Mike

[Bill Exeter]

The length of time doesn't matter.  It is your intent that counts.  You would have to ensure that you truly had the intent to hold for rental (not rehab/flipping) in order to qualify for 1031 Exchange treatment.  The length of time that you rent it out can go a long way to help support your intent to hold for rental, but it is not the only factor.