Build to suit construction exchanges allow the 1031 exchangor to construct improvements to their replacement property in order to meet their unique needs. This type of exchange offers a lot of flexibility, but comes with some additional complexities. Call today to speak with a Duluth 1031 exchange professional who can walk you through the steps to a build to suit exchange – 218.831.1031.
Build to Suit Construction Exchanges
A build to suit construction exchange differs slightly from a traditional 1031 exchange. Sometimes when a taxpayer is exchanging into new property, their replacement property isn’t exactly how they want it. Perhaps there are some necessary repairs, or the taxpayer would like to add on to the existing property. In these situations a build to suit exchange can be invaluable.
With a build to suit construction exchange, you sell your relinquished property and identify replacement property as you would in any other exchange. But before completing the exchange, the taxpayer makes construction improvements or additions to the existing replacement property. These improvements must be completed within the standard 180 day exchange period.
Build to suit exchanges are ideal for businesses that have outgrown their current needs and want to expand into a customized property that fits their needs. The best part is you get exactly the property you want while deferring the taxes on your real estate sale.
Start Your Duluth Build to Suit 1031 Exchange
Build to suit exchanges bring more complexity and potential pitfalls than a traditional 1031 exchange. Make sure you have an experienced qualified intermediary on your team who can help facilitate your exchange and safeguard you from any mistakes that could derail your exchange.
Drop us a line today to discuss your Duluth build to suit exchange. Our 1031 exchange professionals have been assisting Duluth residents with their exchanges for decades. Call today to start your exchange – 218.831.1031.
