From the Ground Up: An In-Depth Analysis of Build-to-Suit and Related Party Exchanges
Bradley T. Borden
Brooklyn Law School
Tax Management Memorandum, Vol. 44, No. 19, January 27, 2003
Build-to-suit exchanges (also referred to as improvements exchanges and construction exchanges) allow taxpayers to dispose of property tax free under section 1031 and use the proceeds to construct improvements on other property. Orgininally published as Recent Developments in Build-to-Suite Exchanges, this Article discusses the case history of build-to-suit exchanges and describes current structures, including leasehold arrangements, that allow exchangers to reinvest exchange proceeds to construct improvements on property owned by a related party. Build-to-suit exchanges involving related party property raise many issues under the related-party exchange rules. Therefore, the Article also discusses those rules.
Number of Pages in PDF File: 39
Keywords: section 1031, tax-free exchange, build-to-suit exchange, leasehold improvements exchange, related-party exchange
Date posted: January 3, 2007