The new online and mobile banking experience is LIVE! Get instructions on how to login to online banking and download the mobile app on the FAQ webpage.

In honor of Veterans Day, Northern Bank branches and the Contact Center will be closed on Monday, November 11. As always, mobile banking, online banking and our ATM network are available to you 24/7.

Spoofing schemes are on the rise and criminals are now pretending to be bank employees. As a reminder, Northern Bank will not call you and ask for personal information like PINs, passwords, social security numbers, or account numbers. Be wary of texts, calls, or emails that ask you to log into, or send money with, payment apps. If you receive a call matching this description, or alerts of suspicious activity on your account, please contact us immediately at 1-800-273-6908 Option "0".

December 3, 2021

How vacation homes qualify for a 1031 tax deferred exchange

1031 Exchange
View of vacation home overlooking water with keys to property

The IRS provides a safe harbor for vacation rentals. In the 2018 New England Real Estate Journal article written by Northern 1031 Exchange Senior Vice President, John Starling, he highlights the details and the differences between a second home and a vacation rental.

A second home is not exchangeable property, however, by following a few rules a vacation home can qualify as exchangeable property under the IRS safe harbor. Starling examines details of the safe harbor rules along with examples of properties that may still qualify for an exchange but lie outside the safe harbor. He also notes that if you have rental income, you must report it to the IRS using Form 1040 and outlines the various questions that must be answered. Lastly, he stresses the importance of discussing your rental income details and tax liability with your CPA or tax adviser.

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About Northern Bank & Trust Company

Northern Bank is a full-service bank dedicated to providing practical, common sense financial solutions to help our customers live their lives and grow their businesses. From deposit products to loans to payment and collections services, we work hands-on with our entrepreneurial customers, both locally and across the country, to provide the financial support they need to realize their personal and business goals. Founded in 1960, Northern Bank has assets of $3.11 billion with 12 locations serving communities throughout Middlesex County. Northern Bank is a Member of the FDIC, and an Equal Housing Lender.

 

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