1031 Like-Kind Exchange

Internal Revenue Code Section 1031 allows taxpayers who own real property held for investment to exchange a Relinquished Property and defer paying capital gain taxes. When properly administered, the 1031 process allows a taxpayer to use all proceeds from the sale of a Relinquished Property to leverage into a Replacement Property. Mutual Savings Bank will serve as the Qualified Intermediary throughout the entire 1031 like-kind exchange process.

Key Elements:

Contact Mutual Savings Bank to serve as Qualified Intermediary.
Provide the purchase agreement and related documents of the Relinquished Property.
Identify potential Replacement Properties within 45 days of closing the Relinquished Property.
Provide the purchase agreement and related documents of the Replacement Property.
Complete the purchase of the Replacement Property within 180 days from the closing on the sale of Relinquished Property.