First Flip, what to do with profit from flip?

[Junior Francica]

Hello everyone, made a post on here already about doing my first flip so wont get into the details about it. 

Something that I have been trying to figure out or learn is, what are my options with what to do with profit from the flip in terms of taxes. 

How much of the profit will be due on my taxes (generally speaking)?

Is there something I can do with the profit to not pay taxes on it? would a 1031 apply and be an option? 

Any help or direction would be greatly appreciated. Thanks!

[Dave Foster]

Exactly right @Peter Mckernan.  In order for a property to be eligible for a 1031 exchange @Junior Francica you must have purchased it with the intent of holding for investment use.  A property you purchase to fix and sell does not count as the intent to hold for investment.

And while there is no statutory holding period.  You must be able to demonstrate that intent to hold and that something happened to cause your intent to change.

A lt of my investors over the years have simply slowed down their fix n flip model slightly so they can qualify for 1031.  They will buy and fix a property and then rent it for a year.  While it is rented they will refinance it to get the cash for their next project.  Once a property has seasoned for a year (a pretty safe time) they will then sell and do a 1031 to buy their next property - and so on and so forth.