1031 Facilitators, Inc.

 

 

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IMPROVEMENT 

In an Improvement Exchange the Qualified Intermediary will acquire a property and either (1) make improvements to it or (2) construct a building on it. It is usually a challenge to make this work within the 180 day time frame required by the regulations, so planning for this exchange must start as early as possible. In order to get the tax deferral, it is not necessary that all improvements be complete at the 180 day mark. Deferral will be achieved so long as your proceeds have been reinvested in bona fide construction.

 

Well form a single member limited liability company to hold the improved property and well be continuously involved so this transaction will be more expensive than a forward exchange. In addition to the normal risks, this type of exchange adds risk from weather, permitting/zoning, contractor scheduling

and material availability.

If you need help with an improvement exchange, please call us at 956-546-1031, or email Tom Sarytchoff. After discussing the transaction with you well forward our engagement letter and exchange contract.