Improvement Exchange Planning
Build-to-suit and improvement exchange structuring with qualified escrow
Improvement exchange planning services help investors identify replacement properties and use exchange proceeds to make improvements or construct new buildings. Also known as construction exchanges or build-to-suit exchanges, this strategy allows investors to customize replacement properties to meet specific needs. Our Columbus, OH team coordinates property identification, improvement planning, Qualified Intermediary coordination, and qualified escrow management. We work within the 45-day identification deadline and ensure all improvements are completed within the 180-day closing requirement. Improvement exchanges require careful tracking of construction costs and coordination with contractors, lenders, and Qualified Intermediaries.
What's Included
- Replacement property identification for improvement exchanges
- Improvement planning and cost estimation
- Construction timeline coordination
- Qualified Intermediary coordination for improvement disbursements
- Qualified escrow management
- Deadline tracking for 45-day identification and 180-day completion
- Compliance verification for improvement eligibility
Common Situations
Investor in Columbus, OH wants to identify land and build a commercial building using exchange proceeds
Portfolio owner seeks to acquire a property and make significant improvements before taking title
Developer needs to coordinate construction improvements within exchange deadlines
Frequently Asked Questions
What is an improvement exchange and how does it work in Columbus, OH?
An improvement exchange in Columbus, OH allows investors to identify a replacement property and use exchange proceeds to make improvements or construct buildings on the property. The improvements must be completed within the 180-day exchange period, and all costs must be paid from exchange proceeds held by the Qualified Intermediary. We coordinate property identification, improvement planning, and construction management within exchange deadlines.
What identification rules apply to improvement exchanges in Columbus, OH?
Improvement exchanges in Columbus, OH follow standard identification rules: the three-property rule, 200 percent rule, or 95 percent rule. The replacement property must be identified within 45 days of selling the relinquished property, and improvements must be completed within 180 days. We help structure identification strategies that account for improvement timelines.
How is boot calculated in an improvement exchange in Columbus, OH?
Boot in an improvement exchange in Columbus, OH is calculated as non-like-kind value received minus non-like-kind value given up. If improvements aren't completed within the exchange period, or if personal property is included, boot may result. We help structure improvement exchanges to minimize boot exposure and ensure all improvements qualify as real property.
What types of improvements qualify for improvement exchanges in Columbus, OH?
Improvements that qualify for improvement exchanges in Columbus, OH must be real property improvements, not personal property. This includes construction of buildings, structural improvements, site work, and other permanent real estate enhancements. Personal property, equipment, and fixtures typically don't qualify. We help evaluate which improvements qualify and coordinate construction to meet exchange requirements.
Example Engagement
Example of the type of engagement we can handle
Client Situation:
Investor selling a property in Columbus, OH wants to identify a land parcel and construct a commercial building using exchange proceeds
Our Approach:
We identified a qualifying land parcel within the 45-day deadline, coordinated improvement planning and cost estimation, worked with Qualified Intermediary to structure improvement disbursements, and managed construction timeline to ensure completion within 180 days
Expected Outcome:
Client identified replacement property, completed construction improvements within exchange deadlines, and successfully deferred capital gains tax on the transaction
Educational content only. Not tax, legal, or investment advice. Not tax, legal, or investment advice. Consult a qualified intermediary and tax advisor before making decisions.
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