1031.Exchange INTELLIGENCE NETWORK
License territory Acquire
ELIGIBILITY

Intent

Also called: investment intent · holding intent

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PLAIN-ENGLISH DEFINITION

The taxpayer’s purpose for holding the relinquished and replacement properties.

What it means in practice.

Section 1031 focuses on property held for investment or productive business use. Documentation and surrounding facts can matter when intent is unclear.

Why it matters.

Intent is why a quick flip and a long-term investment can receive different analysis even when both are real property.

Additional notes.

Section 1031 focuses on property held for investment or productive business use. Documentation and surrounding facts can matter when intent is unclear.

PRIMARY / REFERENCE SOURCES

Read the source material.

irs.gov ↗irs.gov/publications/p544
CONNECTED LANGUAGE

Related definitions.

EligibilityHeld for investmentA qualifying purpose under Section 1031: holding real property for investment rather than primarily for personal use or resale to customers.EligibilityHolding periodThe amount of time an investor owns property.EligibilityDealer propertyReal property held primarily for sale rather than for investment or productive use; it generally does not qualify for Section 1031.
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