Built-to-Suit Exchange

An investor may choose to improve a replacement property by building a structure or making capital improvements on an already existing structure. The same procedure is followed as with a delayed exchange except when the investor identifies the replacement property, the improvements to be constructed must also be identified. Also, the replacement property at closing must be conveyed to an exchange account data title holder (EAT) and held during the time that the improvements are made. Before the end of the exchange (180 days), the improvements must be permanently affixed to the property. Any exchange funds not used will be taxed. The replacement property must be deeded to the investor-owner before the expiration of the 180 day period.

Next: Learn About Reverse Exchanges
Built-to-Suit Exchange

Built to Suit Exchange

An investor may choose to improve a replacement property by building a structure or making capital improvements on an already existing structure. The same procedure is followed as with a delayed exchange except when the investor identifies the replacement property, the improvements to be constructed must also be identified. Also, the replacement property at closing must be conveyed to an exchange account data title holder (EAT) and held during the time that the improvements are made. Before the end of the exchange (180 days), the improvements must be permanently affixed to the property. Any exchange funds not used will be taxed. The replacement property must be deeded to the investor-owner before the expiration of the 180 day period.

Next: Learn About Reverse Exchanges