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Is it possible to use Section 1031 exchange funds for improvements on replacement property?

April 26, 2017funds improvements possible Property replacement section

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Is it possible to use Section 1031 exchange funds for improvements on replacement property?

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Yes, the exchange funds can be used for capital improvements on the replacement property if the funds are used within the 180 day safe harbor period. Capital improvements are permanent fixtures; roof,deck,tile. However, the funds cannot be used for property that is outside the scope of the present Section 1031 exchange.