Capital Gains Question

[Karen Bolyard]

Hello everyone,

I recently purchased a SFR as an investment property and started rehab this week. Trying to decide whether to flip or rent. I had originally thought I would rent for year and do a 1031 to avoid cap gains tax, but I was told since I am a real estate professional ( I am a broker), I would be exempt from cap gains. I had also heard I need to have several homes in an LLC to qualify. We have 4 SFR's- 2 in one LLC, 1 in a different LLC and 4th is my personal residence not in an LLC. Any advice / suggestions is greatly appreciated!!

[Wayne Brooks]

@Karen Bolyard Whoever told you any of this has no clue of what they're talking about. "Real estate professional" status has no effect on this. Your understanding was correct and anyone can do a 1031, with just one property, no LLC, etc.