This refers to a replacement property that has not been built yet. The improvements on the property must be completed prior to the expiration of the 180 days. The property is held by an LLC called the exchange accommodation taxpayer (EAT) in a construction 1031 exchange. Compared to a 1031 exchange, this type of exchange has greater complexity and fees overall.
Construction 1031 Exchange
This refers to a replacement property that has not been built yet. The improvements on the property must be completed prior to the expiration of the 180 days. The property is held by an LLC called the exchange accommodation taxpayer (EAT) in a construction 1031 exchange. Compared to a 1031 exchange, this type of exchange has greater complexity and fees overall.
