Too early for 1031 exchange?

[Jordan Woolf]

I have owned one of my properties for almost 2 years. It has been rented for about 6 months. The tenants are asking to purchase the property.

I would like to do a 1031 but I am not sure if this property would qualify.

Should I wait for the property to be rented for a full year before selling? I asked my accountant and he did not know the answer.

[Michael Plaks]

Quote from @Jordan Woolf:

I have owned one of my properties for almost 2 years. It has been rented for about 6 months. The tenants are asking to purchase the property.

I would like to do a 1031 but I am not sure if this property would qualify.

Should I wait for the property to be rented for a full year before selling? I asked my accountant and he did not know the answer.

What was going on with this property the first 1.5 years? Did you live there yourself? Were you rehabbing it? Was it just standing vacant?

Either way, assuming it qualifies, a more important question is whether you need a 1031 exchange. Start by determining the tax impact of this sale. Your accountant should be able to figure it out.