SFH qualify for 1031 Exchange?

[Brett DeVita]

I recently closed on a single-family home that I planned to renovate and rent out. But now I'm considering selling it and rolling into a larger rental property through a 1031 exchange. I want to make sure this qualifies as "like-kind". So where does the IRS draw the line on considering something a rental property? 

Considering the fact that my original intent was to buy and hold... When does the IRS view this as a fix & flip and disqualify it?

Thanks for any feedback!

[Dave Foster]

@Brett DeVita, Welcome to the murky world of the IRS.  There is no statutory holding period.  Your intent must have been to hold that property for productive use.  So from what you said above that property would qualify for a 1031 exchange.  But know that the shorter the hold period, the higher the bar will be to demonstrate your intent if you're ever questioned.  

Anything can be used to demonstrate your intent - your normal business practice, an unsolicited offer to sell, a better opportunity, correspondence with your professionals etc.  

But also remember that an accident like this one might just be an accident.  But if the same accident is happening several times a year it starts to look like a little more than an accident.