1031 Tax defered holding period??

[Justme_2]

What is the name of your state?What is the name of your state? AZ

Bought a rental home in 1995. Sold it in Jan 2005. Did a 1031 exchange into another rental home, like kind, greater value in Feb of 2005. Due tenant financial problems, will become vacant in Aug. Rather than re-rent thinking of selling due to extremely hot real estate market here (Phoenix). What is the holding period on new rental home as far as IRS is concerned? Would it be a short term gain for new rental and long term for old rental? Or long term for both? Any help greatly appreciated! Thanks.

 

[tdavidl]

generally your basis & holding period carry over to the replacement property under a 1031 exchange (in addition to any adjustments for deferred gain, expenses or boot), so sounds like long tterm gain to me.....