CONSTRUCTION EXCHANGE

In a construction exchange, the replacement property is acquired by an Exchange Accommodation Title Holder similar to the Reverse Exchange.  After the improvements are made, the property is deeded to the taxpayer.   The Construction Exchange will end on or before the 180th day or the date the new property is deeded to the taxpayer.  For purposes of the Exchange, the value of the new property will be the total  of the contract price, plus the costs of all improvements that have been made and paid for before the date of such deeding.  Any improvements made after that date will not be included in the Exchange.

Contact the 1st Authority on IRC §1031 Exchanges to discuss your particular circumstances.  You will find that we are experts on the transaction structuring of all types of exchanges and will assist you in determining the best solution for your situation.