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Updated over 4 years ago on . Most recent reply
Wholesale real estate
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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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.