Property Improvement Exchange Procedural Outline Flyer
When an exchange involves replacement (new) property that is land to be constructed upon or a structure requiring improvements, a build-to-suit or a property improvement exchange will allow for the inclusion of the improvement costs in the exchange value of the replacement property. If the relinquished property is sold prior to the acquisition and improvement of the replacement property, the exchange is a FORWARD build-to-suit or improvement exchange. When the acquisition and improvement of the replacement property precedes the sale of the relinquished property, it is a REVERSE build-to-suit or improvement exchange.
Learn more about forward build-to-suit or property improvement exchange in Accruit's Property Improvement The transfer of the relinquished property to the Qualified Intermediary, and the receipt of the replacement property from the Qualified Intermediary is considered an exchange. To be compliant with IRC Section 1031, the transaction must be properly structured, rather than being a sale to one party followed by a purchase from another party. Exchange Procedural Outline flyer. View and download the flyer by clicking the link below.