1031 Question/Capital Gains

[David F.]

Looking to offer a couple of rentals I own outright in a 1031 exchange.  I read about the need for properties to be seasoned before undergoing a 1031, but I'm not expecting to have any appreciation subject to capital gains.  I bought them earlier this year.  I anticipate valuing them at purchase price for purposes of this exchange.  Do they still need to be seasoned, or does it not matter since the IRS scrutiny won't apply since I'm not claiming any tax benefit for myself?

Does the 1031 holding requirement prevent me from doing a 1031 exchange altogether?  Or does it just disqualify me from receiving the tax benefit on capital gains which, as the situation above implies doesn't appeal to me?  

[Dave Foster]

@David F., Forgive me if I'm feeling schizophrenic and talking to myself :)  

if you're not showing a gain and you've not owned them for long then no reason to even do the 1031.  Especially since your hold period and intent may not line up with the intent to hold required by a 1031. 

Unless you 1031d into them.  And then you've got to examine your intent before trying that 1031.  There is no statutory holding period but you must have had the intent of holding those properties for productive use.  Most folks feel comfortable with anything over a year.  But there could always be specific circumstances that would warrant a shorter (or longer) holding period.