Zions Bank Exchange Allows Sellers to Defer Taxes
Salt Lake City—Zions Bank’s 1031 Exchange Services has reached $1 billion in cumulative deposits since its launch in 2008. The milestone reflects revived interest in deferring capital gains associated with the recent recovery in the real estate market.
“As real estate values have risen in these post-recession years, we’re seeing more clients interested in deferring taxes when they sell their properties,” said Mike Anderson, senior vice president and director of Zions Bank’s 1031 Exchange Services. “We’re helping them understand their options for changing property investments and growing their wealth without cashing out and potentially paying taxes unnecessarily.”
A tax-deferred exchange under Section 1031 of the Internal Revenue Service Code allows for the sale of investment properties and the acquisition of “like-kind” properties while deferring federal — and possibly state — capital gains taxes. An independent party must act as a qualified intermediary to hold funds between the sale of the relinquished property and the purchase of the replacement property.
But in the historically unregulated exchange industry, qualified intermediaries range from disciplined to weak. Zions Bank offers FDIC insurance up to $250,000 on deposits and has additional private professional liability and fidelity bond coverage to protect customers in almost every transaction. The bank also has additional private professional liability and fidelity bond coverage to protect customers in almost every transaction.
Zions Bank’s 1031 Exchange Services is staffed by dedicated professionals who hold Certified Exchange Specialist designations through the Federation of Exchange Accommodators. The group is known for its excellent customer service, rated as a 9.38 on a one-to-ten scale in client surveys. Anderson was recently appointed as secretary of the Board of Directors for the Federation of Exchange Accommodators, a national trade organization that represents professionals who conduct like-kind exchanges under Internal Revenue Code Section 1031. In addition, Business Development Officer Kelly Pearl was recently re-elected as chair of the Certified Exchange Specialist Certification Council, a national designation program that formally recognizes individuals who have demonstrated their knowledge of the Internal Revenue Code Section 1031.