1031 on a flip investment?

[Steven Cowles]

Are you allowed to do a 1031 exchange from a flip to a rental? From what I read, it seems like a grey area doing a 1031 on a flip.

[Dave Foster]

@Steven Cowles, It looks gray because there is no statutory holding period.  The standard is what your intent was.  But that is not gray - either your intent was to hold for productive use and that can be demonstrated.  In which case you can do a 1031.  Or your intent was to flip (which will be evident) and you can't use the 1031.

Most folks feel comfortable at any period more than a year.  But there could be situations where a holding period of less than or more than one year would be justified.

But the gray is only perception.