As a business bank for more than 50 years, we've seen all kinds of real-estate and business transactions. Effectively managing the tax liability associated with a sale can have a significant impact on your returns. Let Northern Bank’s experienced 1031 exchange experts help you defer your tax liability when you plan to sell a business or property and reinvest the proceeds.
Northern Bank, including its subsidiary Northern 1031 Exchange, LLC does not provide tax, legal or accounting advice, nor can we make any representations or warranties regarding the tax consequences of your exchange transaction. We strongly encourage you to seek appropriate professional advice regarding your specific facts and circumstances.
Our expert team has been executing 1031 exchanges for more than 15 years. We have experience in a variety of exchange transactions including commercial real-estate, business, franchise, and vacation homes. Let Northern 1031 Exchange help guide you through this complicated process.
Northern is a proud member of the Federation of Exchange Accommodators (FEA).
All Northern Bank 1031 exchange deposits are held in non-comingled, secure escrow accounts here at Northern Bank. Enjoy the security of protecting your hard-earned equity with a Bank that has consistently earned BankRate's 5-star "Safe and Sound" rating.
According to the Internal Revenue Service’s Code 1.1031(k), a person owning property for investment or business purposes can sell their property and purchase "like-kind" replacement property or properties, through the use of a Qualiﬁed Intermediary, in order to defer payment of their capital gains taxes. The replacement property the exchangor expects to purchase must be identiﬁed within 45 days, and settled within 180 days of the date of settlement of the relinquished property.
In an exchange, Northern 1031 Exchange acts as the Qualiﬁed Intermediary, which is a key requirement for completing a qualiﬁed tax-deferred transaction. As a Qualiﬁed Intermediary, we have extensive knowledge of the exchange procedures and contract stipulations, and we will help make the process simple and efﬁcient. It is important to note that the tax code forbids parties such as the seller’s agent, broker, attorney, accountant, family members and business partners from acting in this capacity.
“Like-kind” doesn’t refer to the grade or quality of a property, but rather the property’s nature or character. For example, if you own a single-family rental property and wish to purchase a farm as a replacement, then that falls under the deﬁnition of “like-kind.” Exchanging a lot or condominium for an ofﬁce building also meets those guidelines. The IRS has broadly deﬁned the type of property that may be exchanged for any other type of property or properties.
Examples of properties that would not qualify for a 1031 exchange would be a personal residence, speculative houses or properties designated for a quick turnaround (i.e. purchasing a home or other property and completing improvements for immediate sale), partnership interests, stocks and bonds.
Contact us to help you preserve your profits and build wealth through Tax Deferred Exchange.
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