“All in all, the process was very simple, payments to contractors was very quick and painless. I am pretty happy with being able to use the proceeds to make the improvements. I would recommend Atlas 1031 and the 1031 deferred improvement exchange.” Southern Escrow Title Company in Destin, Florida referred Jon to Atlas 1031 Exchange […]
A deferred improvement exchange is when the exchangor uses the exchange proceeds or funds towards making improvements to the replacement property following the first leg event or sale of the relinquished property. The only difference between a deferred improvement and a reverse exchange is the sequence of events. In either 1031 exchange, the improvements must be made while an Exchange Accommodator Titleholder (EAT) is on title. A Qualified Exchange Accommodation Agreement (QEAA) is entered into by the exchangor, EAT and the Member of the EAT qualifying for the safe harbor protection provided by Revenue Procedure 2000-37.