EXCHANGES OF A MORE ADVANCED NATURE
Construction Exchanges
In a construction exchange, you buy bare land with the exchange money and build a new building on the land. An Exchange Accommodation Titleholder (EAT) must buy the land for you and begin construction, but unlike an improvement exchange, you can close out your exchange before the building is completed. You must still complete your exchange before the 180 days are up. It is important to note, however, that you cannot take title to the land in your own name, or the exchange will be invalid. This is because you would be attempting to use part of the exchange proceeds for just the land, and the remainder for just the improvements and not for a completed improved property.
