Section 1031 Tax-Deferred Exchanges
Qualified Intermediary services for like-kind exchanges
Selling investment or business property may create tax implications. A Section 1031 Tax-Deferred Exchange allows eligible property owners to defer capital gains taxes by reinvesting proceeds into qualifying like-kind property. First National Bank provides Qualified Intermediary (QI) Services to help facilitate the exchange process while working alongside your attorney and tax advisor.
Is a Section 1031 Exchange Right for You?
A Section 1031 exchange may be worth exploring if you
- Are selling investment or business property and plan to purchase qualifying replacement property
- Want to defer capital gains taxes through a like-kind exchange
- Need an experienced Qualified Intermediary to facilitate the exchange process
Benefits & Features
Benefits
- Potentially defer capital gains taxes by reinvesting proceeds into qualifying like-kind property in accordance with IRS regulations
- Work with an experienced Qualified Intermediary to help facilitate the exchange and manage exchange proceeds throughout the transaction
- Receive personalized support as First National Bank works with your attorney and tax advisor to help keep your exchange on track
Features
- Qualified Intermediary Services for eligible IRC Section 1031 exchanges involving business and investment property
- Secure facilitation of exchange funds during the sale and purchase process
- Coordination with your legal and tax professionals throughout the exchange
Why First National Bank?
A successful Section 1031 exchange requires careful planning and attention to IRS requirements. First National Bank has experience serving as a Qualified Intermediary, providing secure handling of exchange proceeds while coordinating with your attorney and other advisors. Our knowledgeable team is committed to helping make the exchange process as smooth and efficient as possible.
Ready to Learn More?
If you're considering selling investment or business property, speak with one of our specialists before beginning a Section 1031 exchange. We'll help you understand the Qualified Intermediary process and discuss how our services can support your transaction.
Jared Bravard
Trust Officer
Section 1031 exchanges are governed by Internal Revenue Code Section 1031 and IRS regulations. Not all properties or transactions qualify. First National Bank provides Qualified Intermediary Services but does not provide legal or tax advice. We encourage you to consult with your attorney and tax advisor to determine whether a Section 1031 exchange is appropriate for your situation.
The information on this page is not intended to constitute legal, financial or tax advice and should not be used in lieu of any professional advice.
Please be aware that there are time limits to completing a Section 1031 Deferred Like-Kind Exchange or the entire gain will be taxable.
It is also important to know that taking control of cash or other proceeds before the exchange is complete may disqualify the entire transaction from like-kind exchange and make all gain immediately taxable. One way to avoid premature receipt of cash or other proceeds is to use a qualified intermediary or other exchange facilitator to hold those proceeds until the exchange is complete. You cannot act as your own facilitator. In addition, your agent (including your real estate agent or broker, investment banker or broker, accountant, attorney, employee or anyone who has worked for you in those capacities within the previous two years) cannot act as your facilitator. Be careful in selection of a qualified intermediary.
