Sales and tax strategies in December

[Troy Bruflat]

I’ve flipped a house and was renting it out for a while. I got a great offer to buy the house that would give me a profit of around $35,000. They would like to close in the middle of December. I was wondering if anyone had some suggestions that could save me from having to pay so much in taxes. Would I be better off waiting till next year to close or can I still 1031 exchange this at the end of the tax year?

Thanks

[Basit Siddiqi]

If it can wait, I would wait till January.

The 1031 exchange would likely be the best strategy based on your description.
The only reason I say to wait is if the 1031 exchange fails, you would still have potentially some back-up options that you can do by the end of the year.