Build To Suit Exchange

A build to suit exchange is for growing businesses that need more (or highly customized) space in order to expand...

This tax-strategy allows you to sell your old-property and build replacement-property to your specifications - and the best part is, if done correctly, it's all tax free!

An example of this is a company that has outgrown their current  facility - which has appreciated in value but no longer meets their current needs. A built to suit exchange would allow them to sell the old (appreciated) property - and roll the proceeds (tax free) into the newly constructed property.

1031 Tip: You cannot receive your new property until the like-kind improvements have been constructed up to a value that is equal to (or greater than) the value of your old relinquished-property (limited by the 180 day exchange period)

Remember, to defer all of the taxes - you generally have to receive a replacement-property of equal or greater value.

Also, materials that have been paid for but not permanently incorporated (or actually constructed) into the real-property are NOT considered like-kind real estate.

An "exchange accommodation title-holder" (e.a.t.) - is a "holding company" that is authorized to buy your replacement-property and hold it while the like-kind improvements are made. This insulates you from receiving the property prematurely...

The reason the holding-company must insulate you from receiving the exchange-property prematurely - is that any improvements constructed on land that you already own - won't count as like-kind property.

When you are conducting a build to suit you only have up to 180 days to complete the process. Do to this time limitation, build to suit exchanges are ideal for rehabbing existing-structures or making minor-repairs or modifications.

Don't forget, any improvements constructed after you take title or after the 180th day - do NOT count as like-kind.

While the benefits of a build to suit exchange can be tremendous - this is a more complicated-procedure that requires professional care!

Nation Wide Tax-Exchange Services:

Call Me Directly (Toll Free) At 1-888-308-1031 For A Free Consultation - Or Click Here To Start Your Exchange Online Today!