1031 Exchange Services
How Does a 1031 Exchange Work?
Under Section 1031 of the Internal Revenue Code, owners of investment real property can sell their real property and defer capital gains taxes on the sale proceeds by purchasing a “like-kind” real property through a Qualified Intermediary within 180 days of the original sale.
In order to complete a like-kind exchange, you will need a Qualified Intermediary to hold the sale proceeds from the time you sell your property, until the time you purchase your replacement property.
Choosing a Qualified Intermediary
With City National Bank as your Qualified Intermediary, your sale proceeds will be safe and earning interest for you.
- We’ll invest your exchange funds into a City National Bank Money Market Account; any interest earned will be credited to your account.
- Your funds will be FDIC insured up to the stated limit.
- Most institutions operate their exchanges through a subsidiary—we’ll serve directly as your Qualified Intermediary.
Save Time and Money
Our professionals have decades of experience successfully accommodating 1031 exchanges. As your Qualified Intermediary, we’ll make sure that your costs and risks of improperly handling funds are significantly reduced.
Let's Get Started
To begin the 1031 exchange process, contact your Relationship Manager or our Certified Exchange Specialist® Eric Brecher at (917) 455-1551 or Eric.Brecher@cnb.com.