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Improvement 1031 Exchange · Florida QI

Florida Improvement 1031 Exchange

Use exchange proceeds to build, renovate, or complete improvements on your replacement property before you take title. The EAT holds title during the 180-day window; improvements must be in place when title transfers.

Start Your Exchange Florida 1031 Hub
$1,500 flat fee Same-day setup $15M total insurance

$5M Fidelity Bond + $10M E&O Insurance

Segregated Escrow Accounts

IRS-Compliant Exchange Documentation

How a Florida Improvement Exchange Works

Three steps under the Rev. Proc. 2000-37 safe harbor. Improvements are funded through the EAT during the parking window.

1

EAT Acquires Replacement

Simple 1031 forms an EAT LLC that acquires title to your replacement property at the seller's closing. Your relinquished property is sold separately into our segregated escrow.

2

Improvements Funded Through EAT

Exchange proceeds disburse to contractors and vendors through the EAT during the 180-day parking window. You direct the project; we handle the disbursement coordination.

3

Title Transfers At Window Close

By day 180, title transfers from the EAT to you. Real-property value at the moment of transfer (land + improvements completed and in place) is what counts toward your §1031 equality test.

Is a Improvement Exchange Right for You?

A short framework. Below that, links to the other three structures.

When It Fits

  • You found land or a property that needs improvement to match your relinquished value
  • Your contractor can complete the work within 180 days
  • You want to use exchange proceeds (otherwise taxable boot) for the improvements
  • Your project is straightforward enough to permit and build inside the safe-harbor window

When to Consider Another Structure

  • Construction will exceed 180 days — only completed-and-in-place improvements count
  • Permitting timelines are uncertain — start the clock too early and you risk failure
  • Replacement property is already complete — a forward or reverse exchange is simpler and cheaper

Other Florida Exchange Structures

Forward Exchange

$799

Reverse Exchange

$1,500

DST Exchange

$799

Florida-Specific Considerations

How Florida treatment intersects with this improvement exchange. Tax topics for your CPA — Simple 1031 handles QI mechanics only.

No Florida State Income Tax

Florida does not impose a state income tax on individual capital gains. A §1031 exchange defers federal capital gains and depreciation recapture — there is no separate state tax on the gain to defer. Your CPA can confirm the federal treatment on your return.

Documentary Stamp Tax (Transfer Tax)

Florida charges documentary stamp tax on deeds at $0.70 per $100 of consideration ($0.60 in Miami-Dade plus a discretionary surtax on non-single-family). This is a transfer tax handled by your closing agent — it is not an income tax and is not deferred by §1031.

No Florida-Specific 1031 Form

Florida has no state-specific §1031 form because there is no state income tax to track. Federal coordination is handled through Form 8824 on the federal return, prepared by your CPA. Simple 1031 provides the exchange documentation your CPA needs but does not prepare or file tax forms.

Scope note: Simple 1031 LLC is a Qualified Intermediary. We do not provide tax, legal, or investment advice. Work with a qualified Florida CPA for state filings and tax planning, and a real estate attorney for legal questions.

Florida Improvement Exchange Pricing

Flat fee. Same in Florida as anywhere. No hidden charges, no state surcharges.

Flat Fee. No Surprises.

Florida Improvement Exchange

Build value with exchange proceeds — EAT-structured, 180-day window

$1,500 /exchange
  • EAT LLC formation for improvement parking
  • Construction draw disbursement coordination
  • Segregated escrow for exchange proceeds
  • Contractor lien-waiver coordination
  • 180-day deadline tracking under Rev. Proc. 2000-37
  • Dedicated exchange coordinator
  • $5M Fidelity Bond + $10M E&O Insurance
Get Started

Fee deducted from exchange proceeds after your Florida property closes. Nothing out of pocket to start.

Florida Improvement Exchange Questions

If you do not find your answer here, call us at (725) 224-5008.

Varies by jurisdiction — coastal counties and Miami-Dade municipalities often run longer than inland. Coordinate with your contractor and permit expeditor before starting the exchange clock. Substantial commercial projects in coastal flood zones may not fit.
Florida Building Code and county-specific hurricane / flood-zone requirements apply to all construction. These are your contractor and project team's responsibility; Simple 1031 coordinates the §1031 mechanics and exchange-fund disbursements only.
Yes — doc stamp tax applies on each deed transfer during the EAT cycle. Your closing agent handles the doc stamp at each step. This is a transfer tax separate from §1031 and is not deferred.
No. Under Treasury Regulation §1.1031(k)-1(k), a party you have had a working relationship with in the prior two years — including your attorney or CPA — is a disqualified person and cannot hold exchange proceeds. The IRS requires an independent Qualified Intermediary.
Your exchange proceeds are held in segregated escrow — never commingled with operating funds or other clients' exchanges. Simple 1031 carries a $5M Fidelity Bond and $10M Errors & Omissions Insurance, and our escrow accounts use FDIC-insured banking partners.
Simple 1031 charges a flat $1,500 for the Improvement exchange. Same flat fee in Florida as anywhere else — no state surcharge, no hourly billing. Fee deducted from exchange proceeds after closing.
No. Simple 1031 is a Qualified Intermediary, not a tax advisor. Your CPA prepares Form 8824 and any state-specific filings. We provide the exchange documentation your CPA needs.

Start Your Florida Improvement Exchange

Tell us about your Florida property. We will respond within one business day.

Your information stays confidential. We respond within one business day. Or call now: (725) 224-5008.

Ready to Start Your Florida Improvement Exchange?

Engage Simple 1031 before you close. Flat $1,500 fee. Nothing out of pocket to start.

Start Your Exchange Call (725) 224-5008