Question:
Is it possible to exhange an REO into another property in order to defer taxes and if so what would be the minimum time frame?
Answer:
You’re speaking of 1031 Exchange Rules. This is really a question for your tax person as we do not give any tax or legal advice.
However, that being said, it doesn’t matter the source of the property, whether it’s an REO or Short Sale, or owner-seller. Whether or not a property qualifies for 1031 Exchange depends on whether it complies with 1031 Exchange Regulations and your INTENT!
I suggest you do the research by checking with your tax person or the internet (such as the IRS website) for these regulations.