1031 Exchange Account
UTB: the partner you need to facilitate your 1031 Exchanges.
If you’re looking for a way to save on taxes and earn interest for your business, you should know about the UTB 1031 Exchange Account. With this account, your business can defer its taxable gains on the sale of investment real estate when reinvesting in a new qualified property, per Section 1031 of the IRS Code. In addition to delivering significant tax savings which can be used to purchase additional investment property, the UTB 1031 Exchange Account also earns you interest.
UTB 1031 Exchange Account Benefits
- Earn Interest on your deposited sales proceeds over the course of the exchange period
- Tax deferral for savings you can reinvest
- Opportunity for capital appreciation
- Expert assistance from experienced staff who can guide you through the timelines and processes that are required to realize benefits
- UTB 1031 is a Qualified Intermediary under Section 1031 of the IRS Code relating to tax-deferred exchanges
How to Qualify for a Like-Kind Exchange
To qualify for a 1031 Exchange Account setup, the replacement property must be a “like kind” property held for investment or used productively in a trade or business. It must also be of equal or greater value, and you must reinvest all of the equity in the replacement property, resulting in the same or greater debt on the replacement property (cash equity cannot be replaced with additional debt).
The following are examples of qualified “like-kind” real property exchanges:
- Raw land for rental property
- Single-family rental for multi-family rental
- Retail space for motel/hotel
- Farms/ranch for a golf course
- 30-year leasehold interest for fee simple interest
- Non-income-producing raw land for income-producing rental property
Both properties must be similar enough to qualify as “like-kind.” Like-kind property is property of the same nature, character or class. Quality or grade does not matter. Most real estate will be like-kind to other real estate.
Getting Started
UTB 1031 is ready to get started with your 1031 exchange bank account. First, we will need the following to prepare the legal documents for your like-kind exchange closing:
- New Exchange Data Form
- Form W-9 (for the investment of sales proceeds)
- Title Company Contact Information
- Relinquished Property Purchase and Sale Agreement or Contract
Learn More
Discover more about our 1031 Exchange Account, frequently asked questions, and what to expect.
Work with Us
UTB 1031 as a Qualified Intermediary is here to help your business realize tax savings and earn interest during your property exchange!**
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**Consult with your tax and legal advisors regarding the tax consequences of your 1031 exchange transaction.