EXCHANGES OF A MORE ADVANCED NATURE
Improvement Exchanges
An improvement exchange allows you to buy a fixer-upper with part of the exchange proceeds, and use the rest of the proceeds to make improvements. In an improvement exchange, when you identify the property on the 45 day list, you must also specifically say what improvements you are going to make, and how much they will cost. Like reverse exchanges, the EAT will take title to the property while the improvements are being done. You must identify sufficient improvements to use all your exchange proceeds and complete the work within the 180 day period.
