Does this qualify for a 1031?

[Ryan Huddleston]

I bought a house a year ago then did a major rehab. I advertised it for rent and even showed it to a few potential renters but decided to sell it instead. Can I 1031 exchange it since it was never actually rented or does it have to be treated as a flip?

[Ashish Acharya]

Originally posted by @Ryan Huddleston:

I bought a house a year ago then did a major rehab. I advertised it for rent and even showed it to a few potential renters but decided to sell it instead. Can I 1031 exchange it since it was never actually rented or does it have to be treated as a flip?

 Depends on your previous activities. If you are a flipper, then might be risky. If you have never flipped a property before, you have a good chance of defending it as you have well documented intent with showing and you already have holder it for a year.