Understanding 1031 Exchange with Brookline Bank: Insights from an Industry Expert

Understanding 1031 Exchange: Insights from an Industry Expert



Thomas E. St. Jean is Senior Vice President and Manager of Brookline Bancorp 1031 Exchange Services LLC, and has provided Qualified Intermediary services for the last 24 years. Deferring Capital Gains on Investment Real Estate Sales 1031 Exchange is a tax-deferred transaction that allows investors to sell a property and defer payment of capital gains tax and depreciation recapture when the requirements and process for deferral are followed. In addition to tax deferral, a 1031 Exchange allows investors to grow, diversify, and/or consolidate real estate investments for commercial and investment residential properties. It may also allow the taxpayer to switch from management intensive investments to passive ones. When it comes to setting up a 1031 Exchange there are several requirements that must be met, and steps completed for an exchange to qualify. Importantly, the 1031 escrow must be established, and exchange documents must be signed prior to the closing of the sale. Two key deadlines are that the exchanger must identify a replacement property within 45 days of selling their property, and that the exchanger closes on the replacement property within 180 days. Brookline Bank has been providing 1031 Exchange services for 12 years. Led by Tom, the team of six bank employees handles over 300 exchanges per year, totaling transaction values in excess of a $1 billion annually. Visit BrooklineBank.com/1031 for more information.