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.
- 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.
For questions or assistance regarding the 1031 Like-Kind Exchange Process, please contact: