There are several different types of 1031 exchanges. Here we’re going to discuss the build-to-suite construction exchange and how it can be beneficial in helping you defer capital gains taxes while finding the right property to suit your needs. If you have any additional questions or need further assistance with your 1031 exchange, don’t hesitate to contact our Michigan qualified intermediaries today!
What is a Build-to-Suit (or Construction) Exchange?
A build-to-suit (also known as a construction) exchange is a 1031 exchange in which the taxpayer conducting the exchange constructs improvements to their replacement property as part of the 1031 process. These improvements still need to be completed within the allotted 180 day time line for all 1031 exchanges. So keep that in mind when considering a build-to-suit exchange. You’re not going to be able to construct the Taj Mahal – only improvements that can be completed within the allotted time frame.
Benefits of a Build-to-Suit Construction Exchange
There are numerous benefits to a build-to-suit 1031 exchange. With a build-to-suit exchange, you can make improvements to your replacement property if you’re not satisfied with it as-is. This is a great way to make minor changes to get a property that best suits your needs.
Michigan 1031 Exchange Company
Looking to save money in capital gains taxes on the sale of your investment real estate? Then a 1031 exchange is right for you! Let our qualified intermediaries help. We have over two decades of experience in the 1031 exchange industry and have facilitated all types of exchanges all across the country. We can walk you through every step of your 1031 exchange, advising you and answering your questions along the way. Contact us today to learn more about the 1031 exchange process and to set up a time to chat about your next exchange.