Understanding Build-to-Suit and Improvement Exchanges
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A Build-to-Suit Exchange (BTS) is where an Exchanger purchases land to build the desired structure as the Replacement Property.
An Improvement Exchange entails the Exchanger purchasing Replacement Property with the intention to improve the structure.
Once the Exchanger takes title to the property, any improvements are considered payment for labor and materials and such payment is not the purchase of like kind property. Learn about the process of these type of 1031 Exchanges and the reasons they are used in some situations.
