ELIGIBILITY

Holding period

Also called: how long property is held · minimum hold

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PLAIN-ENGLISH DEFINITION

The amount of time an investor owns property.

What it means in practice.

Section 1031 does not provide a universal bright-line minimum holding period for unrelated exchanges. Holding time is one fact that may bear on investment intent, while separate explicit timing rules apply to related parties and certain dwelling-unit safe harbors.

Why it matters.

Avoid treating industry rules of thumb as statutory guarantees.

Additional notes.

Section 1031 does not provide a universal bright-line minimum holding period for unrelated exchanges. Holding time is one fact that may bear on investment intent, while separate explicit timing rules apply to related parties and certain dwelling-unit safe harbors.

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