How long do I have to hold the replacement property after a 1031 exchange?
There’s no fixed holding period written into the tax code, but you must genuinely intend to hold the replacement property for investment or business use. In practice, many advisors suggest holding for at least one to two years to demonstrate that investment intent, since selling or converting it too quickly can lead the IRS to challenge the exchange.
What the IRS actually tests is your intent at the time of the exchange, not a specific number of days. A quick flip undercuts the claim that you held the property for investment.
Holding across two tax years, and renting rather than immediately using the property personally, are common ways to support intent. If you plan to eventually convert it to a home, see can I 1031 into a primary residence.
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General education — not tax or legal advice. This explains how §1031 exchanges work in general terms and uses simplified assumptions. Rules and tax rates change and your situation is specific. Talk to a qualified CPA or tax attorney before you rely on any of it. See our full terms & legal notice.