Capital gain

[Taryn Elbaor]

How do you get by without getting charge crazy capital gain on your taxes at the end of the year in Indiana.

[Bill Exeter]

Originally posted by @AUDREY DESOUZA:

Yes David Foster you are right, however, my undestanding, is I just have to hold the property for two years.  

Hi Audrey,

Unfortunately, that is a very common misconception.  The requirement to qualify for 1031 Exchange treatment is not the amount/minimum amount of time that you hold the property (such as two years as you mentioned), but actually your INTENT to hold the property for rental, investment or business use.  Properties bought and held for rehab/flipping are actually bought with the intent to hold for sale and are not held for investment purposes and therefore do not qualify for 1031 Exchange treatment.  It is all about the INTENT and not the amount of time.  The amount of time is just one factor that can be use for or against you to prove that you had the intent to hold for investment purposes.