When you’re looking to exchange property, it’s often difficult to find a replacement property that fits your exact needs. A build-to-suit construction exchange allows you to make improvements to your replacement property during the course of your 1031 exchange so you can get the property you need. Call today to speak with one of our Boston 1031 exchange professionals. We will work with you through all the stages of your exchange, answering all of your questions along the way 877.373.1031.
Construction Build-to-Suit Exchanges
A construction exchange (also known as a build-to-suit exchange) is a type of 1031 exchange in which improvements are constructed to the replacement property before the exchange is completed. For example, let’s say you have an apartment complex in downtown Boston that you want to 1031 exchange for a bed and breakfast. However, the bed and breakfast is old and run down, and you want to do some renovations before completing your exchange. A build-to-suit exchange allows you to do just that.
Construction exchanges (just like all other 1031 exchanges) need to be completed within the 180 day exchange period. With that in mind, your options are somewhat limited in terms of what you can build. But having the option to make moderate improvements to your replacement property before your close on it is quite attractive to many investors.
Contact a Boston Construction Exchange Professional
Build-to-Suit exchanges bring more complexity than a standard 1031 exchange. That makes it even more essential to hire a qualified intermediary to facilitate your exchange. Involve an intermediary early on in the process. We’ve seen too many exchanges that fail because the taxpayer did not have the proper guidance before beginning their exchange. Our Boston qualified intermediaries have years of experience helping taxpayers through every step of their construction exchange. Give us a call today to chat about your 1031 exchange options for deferring capital gains taxes on the sale of property 877.373.1031.