How long must I own a property before I 1031 it?

[Scott Anthony]

Is there a time limit on how long I must have owned a property, before I can sell it and 1031 exchange the proceeds into something bigger? If so, how long?

[Bill Exeter]

Yes, we have been involved in many expert witness cases where the intent to hold has been tested. The amount of time is not the issue, the intent to hold is the issue. The question is: Did the investor have the intent to hold for investment, or did they have the intent to hold for sale (i.e. inventory in a real estate business such as fixers/flippers). If it was held for investment, then it will qualify, if it was held for sale, it won't. There is obviously lots of room for interpretation here, so an investor must decide how aggressive or conservative they wish to be.