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Updated over 4 years ago on . Most recent reply

Account Closed
  • Rental Property Investor
  • Brooklyn
9
Votes |
87
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Wholesale real estate

Account Closed
  • Rental Property Investor
  • Brooklyn
Posted

If take the profits of a wholesale deal and do a 1031 exchange and put it into a rental property is that money from the wholesale deal tax deductible

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Ned Carey
  • Investor
  • Baltimore, MD
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Ned Carey
  • Investor
  • Baltimore, MD
ModeratorReplied

NO.

The wholesale deal is treated as earned income. It was not a property held for rental investment.

Generally a property needs to be held for a year with a clear intent of using it as a rental in order to do a 1031 exchange with the sale profits. 

  • Ned Carey
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