Property Improvement Exchange Procedural Outline Flyer
When an exchange involves replacement (new) property that is land to be constructed upon or a structure requiring improvements, a build-to-suit or a property improvement exchange will allow for the inclusion of the improvement costs in the exchange value of the replacement property. If the relinquished property is sold prior to the acquisition and improvement of the replacement property, the exchange is a FORWARD build-to-suit or improvement exchange. When the acquisition and improvement of the replacement property precedes the sale of the relinquished property, it is a REVERSE build-to-suit or improvement exchange.
Learn more about forward build-to-suit or property improvement exchange in Accruit's Property This refers to a type of exchange done where some of the proceeds of the sale of the relinquished property will be used to cause improvements to be added to the improvements already on the replacement property so that the taxpayer can complete the trade where both the value of the land and of the enhanced improvements will count for the amount the taxpayer traded for. For example a taxpayer may put in new heating, ventilating, air conditioning, roof and windows on the property. These types of exchanges are structured pursuant to IRS Rev. Proc. 2000-37 and are sometimes known as “property parking exchanges” and require the exchange facilitator to take on an additional role as a Qualified Exchange Accommodation Titleholder. Improvement Exchange Procedural Outline flyer. View and download the flyer by clicking the link below.
