A build-to-suit or construction improvement exchange is a type of 1031 exchange that allows the taxpayer conducting the exchange to build improvements to their replacement property within the time frames of the exchange. These exchanges can be quite useful if you find a replacement property that doesn’t quite match your required specifications. Reach out to our Minnesota qualified intermediaries today if you have questions or concerns regarding your build-to-suit construction exchange – 877.373.1031.
Explaining the Construction Exchange
If you have any experience buying or selling real estate, you know that the property you purchase doesn’t always come exactly the way you want it. This is true for home purchases, as well as 1031 exchanges. Thankfully, with a construction improvement exchange (also known as a build-to-suit exchange) you can construct improvements to your replacement property during the course of your 1031 exchange. This video gives a brief explanation of the construction / improvement exchange:
The biggest hitch with a construction exchange is that your improvements need to be completed by day 180 after you sell your relinquished property. So your options are somewhat limited, but many taxpayers are thankful that they can construct improvements to the replacement property and include those in their 1031 exchange transaction.
Bemidji 1031 Construction Exchange Services
There are a lot of moving parts when it comes to a 1031 exchange. That goes even more so for construction exchanges. In addition to all the 1031 deadlines and regulations, you also have to make sure the construction is progressing as planned so you can have everything finished by your 180 day deadline. A qualified intermediary can take some of this off your plate by drawing up all the required 1031 documentation, guiding you through the process, and answering your questions. Our Bemidji 1031 exchange professionals have been helping Minnesota investors with their like-kind exchanges for decades. Let us help you with your next build-to-suit exchange – 877.373.1031.