There are numerous types of 1031 exchanges that you can use to defer capital gains taxes on the sale of investment real estate. For some taxpayers, it can be difficult to determine which type of exchange best suits their needs. In this article, we are going to talk about when to consider a build-to-suit 1031 exchange of real estate.
Build-to-Suit Exchanges
A build-to-suit exchange has the same ultimate outcome as any other type of exchange – capital gains tax deferral. However, this type of exchange is a bit more complicated than a typical forward exchange. With a build-to-suit exchange, you perform construction improvements on your property as part of the exchange itself. This is a great option for those who can’t find a replacement property that perfectly matches their needs.
Bear in mind that any improvements made to the property as part of the exchange need to be completed within the 180 day time frame that governs all exchanges. It’s important to bear this deadline in mind and do as much prep work as possible before starting your exchange.
Turn Your 1031 Exchange Dream into a Reality
Contact CPEC1031, LLC today to turn your 1031 exchange dream into a reality! Section 1031 of the IRC is available for all US taxpayers to use. With the power of section 1031, you can defer your capital gains tax burden when selling real estate that qualifies for 1031 exchange treatment. The qualified intermediaries at CPEC1031, LLC have over two decades of experience helping taxpayers just like you defer their capital gains taxes. Let us put our experience to work and help ensure your 1031 exchange is successful.
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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