What This Includes

Our Improvement Exchange Support service helps investors complete improvement (build-to-suit) exchanges where replacement property is acquired and improved within the exchange timeline. This service is designed for property owners who want to use exchange proceeds to improve replacement property, requiring careful coordination of acquisition, construction, and exchange completion.

We coordinate with Qualified Intermediaries, qualified escrow companies, contractors, and all parties involved in the improvement process. Improvement exchanges allow you to acquire replacement property and use exchange proceeds for improvements, but the improvements must be completed and the property must be received within the 180-day exchange period. We help Albuquerque, NM investors understand the timing requirements and coordinate construction schedules to meet exchange deadlines.

Our support process includes timeline planning, contractor coordination, fund disbursement through qualified escrow, progress monitoring, and deadline management. Improvement exchanges are more complex than standard exchanges and require careful planning to ensure construction completes within the 180-day window. Our team helps you navigate these complexities while maintaining exchange eligibility.

FAQs about Improvement Exchange Support

What is an improvement exchange?

An improvement exchange allows Albuquerque, NM investors to acquire replacement property and use exchange proceeds to make improvements, with the improved property received within the 180-day exchange period. The improvements must be completed and the property must be received as improved property to complete the exchange. We help Albuquerque, NM investors understand these requirements and coordinate the improvement process to meet deadlines.

What identification rules apply to improvement exchanges?

Improvement exchanges for Albuquerque, NM investors still require compliance with identification rules—you must identify the replacement property (as it will exist after improvements) within 45 days. The identification should describe the property and planned improvements. We help Albuquerque, NM investors properly identify improved replacement properties and ensure compliance with identification requirements.

What happens if I receive boot in an improvement exchange?

If Albuquerque, NM investors receive boot (cash or non-like-kind property) in an improvement exchange, that boot amount is taxable. Boot can occur if improvement costs don't fully utilize exchange proceeds, if there are construction delays causing funds to be returned, or from property value differences. We help Albuquerque, NM investors structure improvement exchanges to minimize boot and coordinate with tax advisors.

What is the timeline for improvement exchanges?

Improvement exchanges for Albuquerque, NM investors must be completed within the standard 180-day period from closing on the relinquished property. This includes time for acquisition, construction, and receiving the improved property. The 45-day identification deadline still applies. We help Albuquerque, NM investors plan construction schedules to ensure completion within the 180-day window.

Can improvements be made after receiving the replacement property?

For improvement exchanges, Albuquerque, NM investors must receive the improved property within the 180-day exchange period. Improvements made after receiving the property don't qualify as part of the exchange. We help Albuquerque, NM investors understand this requirement and coordinate construction to ensure the improved property is received within the exchange timeline.

Improvement Exchange Support