Also referred to as a construction or improvement like-kind exchange, these transactions allow the taxpayer to build, construct, or make capital improvements to a property before acquiring it as a replacement. Exchange proceeds from the relinquished property may be used to fund the construction or build-out within certain guidelines.

An Exchange Accommodation Titleholder (EAT) may hold the property during construction as part of a Parking Arrangement. The Qualified Intermediary (Accommodator) controls exchange funds for acquisition of replacement property and payment of construction costs. By the end of the 180-day holding period for the exchange, the improved replacement property is transferred to the taxpayer to complete the tax-deferred exchange.

Structuring a Build-To-Suit Exchange may allow the taxpayer to purchase a replacement property of lower value, and make capital improvements to increase the value to equal or greater than the relinquished property- thereby avoiding tax liability.

A Ten Thirty-One Exchange Corp. 236 Montezuma Ave.
Santa Fe, NM 87501
505-982-1031 phone
505-982-5211 fax