Fairhaven Realty
Fairhaven Realty
Fairhaven Realty, a br of Lakeway Realty, Inc.

Q & A 1031 Tax Exchanges

Posted on February 22, 2010

We've just enjoyed a beautiful weekend in Bellingham, WA, and this Monday, February 22, 2010 proves to be equally as nice. It's hard to believe we're having weather this warm in February!

QUESTIONS AND ANSWERS ON 1031 TAX EXCHANGES (continued from previous blogs).
Can the proceeds from the relinquished property be used to make improvements to the replacement property?
Yes. This is known as a Build-to-Suit or Construction or Improvement Exchange. It is similar in concept to a reverse exchange. The taxpayer is not permitted to build on property she already owns. Therefore, an unrelated party or parking entity must take title to the replacement property, make the improvements, and convey title to the taxpayer before the end of the exchange period.
 
*Information gathered/quoted from the National Association of REALTORS® online library-1031 Exchange-FEA (Federation of Exchange Accommodations)

Share: del.icio.us Digg StumbleUpon
Post a Comment on "Q & A 1031 Tax Exchanges"
Name
Email
Website
Comment
 
Fairhaven Realty, a Branch of Lakeway Realty Inc. | 1100 11th Street, Bellingham, WA 98225 | Office: 360-676-8990 | Fax: 360-734-5109
©2010 GraphicalData, Inc.   Site Map