How long should I lease for it to qualify for the 1031 exchange

[Mary Jay]

Hi guys,

In order to qualify for a 1031 exchange, 

1) how long is the property needs to be rented?

2) does the rental income need to be reported on taxes for a certain period of time ? (O sense it probably will be the same answer as for the first question)

thank you! 

[Dave Foster]

@Mary Jay, There's actually no statutory requirement for income or holding period.  Vacant land or property that you have held for appreciation would qualify.  

Where it gets fuzzy is if you never rented or tried to rent.  But also used it for personal use.  In that event the IRS could say you weren't really holding as an appreciating investment.  You were holding it for personal use.  But if you're not using it for personal use then it should be easy for your accountant to agree with your investment intent.