Land for land and the "Like-Kind" rule...

Does a Fix-and-Flip property qualify for a 1031 Exchange...?

Generally, fix-and-flips do not qualify for a 1031 Exchange. The reason they don’t qualify is that typically people plan on selling a fix-and-flip as soon as the improvements are finished.

In the upcoming book, Rich Dad's Real Estate Advantages: Tax and Legal Secrets of Successful Real Estate Investors (Warner, Paperback), Gary Gorman writes,

Section 1031 does not allow you to do an exchange on property you hold for “re-sale”, although the IRS does not define that term. Essentially it means property you buy with the intent of immediately selling it rather than holding it for investment. A classic example of property held for resale is “fix-and-flips”. A fix-and-flip is where you buy a distressed property with the intent to quickly fix it up and then sell it.

--The Experts