He then loses the property, and in the ensuing audit Jim Bob Bank discovers he bought the trade lines to artificially pump us his score.

If anyone has any experience in this holding period mess I"d appreciate their input.You are correct there are no required holding period for doing a 1031 exchange, but the bare minimum you would want to do is one year and even that is pushing, it does not guarantee they will come after you if you do it sooner, but it does greaten your chances of them auditing the transaction.

We offer tax reduction, IRS audit proofing, entity structuring, and other financial services that could also benefit you (depending on your particular situation).

It's just that Delaware does report to the IRS and Nevada I believe doesn't which can mean less audits.

If you get audited by the IRS, you're toast.

There are still many investors who do the 1031 exchange anyway, but you would be taking a risk that under audit the 1031 exchange could be disqualified.

This is an old audit, but the gist of it is the recommendation is for HUD to drop the 12-month OO requirement. http://archives.hud.gov/offices/oig/reports/internal/ig0730001.pdfIf someone has information to the contrary, please post a link.

A good GC is worth their weight in gold.After auditing the books, I would probably try to work with him assuming it didn't eliminate my ability to make a profit on the deal and I wanted to work with him in the future.Honestly though, your biggest risk isn't with the GC, it is with the subs.

I recommend it as it is one less thing on your tax return to be audited.

Under another deal structure he is agreeable to a 0% interest rate, but I'm not sure if that would be viewed as reasonable under an audit.