If you’re planning on selling an investment[cite::42::cite] property, you may face a capital gain that could be subject to federal and state taxes. A tax-deferred exchange under Section 1031 of the Internal Revenue Code allows you to sell investment properties and acquire “like-kind” properties while deferring federal, and possibly state, capital gains taxes.

In order to complete a tax-deferred exchange, a third-party qualified intermediary must hold funds between the sale of relinquished property and the purchase of replacement property.

With your exchange funds deposited with California Bank & Trust (CB&T), you have the security of a regulated financial institution and the funds are insured up to the current FDIC limit. Funds are held in a Qualified Trust Account[cite::41::cite] for your benefit, where they can only be distributed with your written approval. We know you want your funds to be secure.

Through our affiliate, Exchange Services, LLC, you will have the advantage of:

Qualified Trust Accounts: 

• Funds in a Qualified Trust Account are held in trust for the benefit of the taxpayer 
• Any and all disbursements from the account occur only upon approval by the taxpayer in writing

Earned Interest: 

• At the taxpayer’s option, funds can be held in a money market account paying competitive rates 
• All interest earned is credited to the taxpayer

Taxpayer’s Exchange Funds Stay with a Name You Trust: 

• CB&T has a 50-year tradition of serving the communities in which it operates
• With value-added service in mind, Exchange Services, LLC, proudly offers 1031 exchange facilitation to complement many other banking and financial services already offered by CB&T

Certified Exchange Specialist: 

• Certified Exchange Specialists® are on staff to handle the most complex exchange transactions 
• Our professionals all come with exchange backgrounds, offering many years of experience

Nationwide Service: 

• Exchange Services, LLC, performs tax-deferred exchanges nationwide so that we can serve your needs conveniently

Find out how Exchange Services, LLC, can help you complete your tax-deferred exchanges. For more information, please contact our 1031 exchange specialist, Kelly A. Pearl, Esq., CES®, at (858) 357-7212.

Exchange Services, LLC, an affiliate of California Bank & Trust, offers 1031 Exchange Services.