The central issue is whether or not the investor has the intent to “hold for investment”, not just the period of time.  There is no “safe” holding period to automatically qualify as being held for investment.  Time is only one of the factors the IRS can look at to determine the taxpayer’s intent for both the relinquished and replacement properties.  Every investor has unique facts and circumstances and it is up to them, and their tax or legal advisors, to be able to substantiate that their primary intent was to hold property for investment purposes. Read the full article, How Long to Hold.