Why don’t we talk about what a build-to-suit exchange is? Let’s say that you have a property that doesn’t meet your needs any longer. You’re constrained at your current location and you’re having zoning issues.
So you think to yourself that you’d like to sell this relinquished property, take the money and go up to Rogers, Minnesota, where the land is cheap and plentiful and the zoning restrictions are easier. There you could build a much bigger facility that you won’t be so cramped in and that you’ll be able to do more business in.
So you build a beautiful property with improvements built to your specifications. And you can have those constructions done within 180 days. So you have the intermediary buy the dirt in Rogers, and the intermediary allows for the construction of the improvements during your 180-day period. Towards the end of the 180-day period, when the real property improvements exist and are erected as improvements, the intermediary would transfer that property to you to complete your exchange. Now you’ve got exactly what you want, where you want it, built the way you want it. But you’ve got to get it done within 180 days in order to defer your taxes.
A Qualified Intermediary is Your 1031 Exchange Guide
If you’re conducting a 1031 exchange, it’s always a good idea to work closely with a qualified intermediary. At CPEC1031, LLC, our qualified intermediaries act as your guides through the 1031 exchange process. We have help ensure you meet all the requirements and benchmarks of section 1031 and answer any questions that arise during the process. We have been working with taxpayers on their 1031 exchanges for more than two decades. Let us put our experience to work for you. Contact us today at our Minneapolis office to set up a time to speak with one of our 1031 intermediaries.
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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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