Build-to-suit exchanges offer an excellent opportunity for taxpayers to improve their replacement properties before acquiring them in a 1031 exchange transaction. But there are serious time constraints on any 1031 exchange that you need to be aware of. In this article, we are going to explain when you can begin construction on your 1031 exchange property.
Time Constraints of a Build-to-Suit 1031 Exchange
A build-to-suit exchange is restricted by the same timelines as any other 1031 exchange. Specifically, you only have 180 days total to complete your entire exchange. Any construction improvements made to the property must be completed within that 180 day time period. It’s important to keep that in mind when you’re planning your exchange. You’re not going to be able to build a massive skyscraper in that timeframe, but you can make smaller improvements that will benefit your property. Make sure you get all of your contractors lined up before you begin the process so you can rest assured that the work will be completed on time.
1031 Exchange Company in Minnesota
CPEC1031, LLC is a 1031 exchange company located in Minneapolis, MN. We have been providing like-kind exchange intermediary services to clients across Minnesota and throughout the United States for over two decades. We have the skills and experience necessary to make your 1031 dream a reality. Contact us today to learn more about the tax-saving benefits of a 1031 exchange, the process of exchanging property under section 1031 of the Internal Revenue Code, and how we can help you defer your capital gains taxes when selling investment real estate.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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