Wachovia - Like-Kind Exchanges

Wachovia Exchange Services (WES), a department of Wachovia, has a dedicated staff of professionals focused entirely on providing qualified intermediary services for Section 1031 tax-deferred exchanges.

Under Section 1031 of the Internal Revenue Code, investment or business property owners may exchange real or personal property currently held for investment or productive use for comparable “like-kind” property, deferring the capital gains tax until the replacement property is ultimately sold.

Advantages of Choosing Wachovia as Your Qualified Intermediary:

Security of 1031 Proceeds
Wachovia Bank, NA, is one of the largest financial institutions in the United States and, as such, WES is able to offer direct financial services to the taxpayer. For each deferred exchange, Wachovia Bank, NA acts as qualified intermediary and opens a segregated Wachovia Bank, NA account. This account is FDIC insured.

Knowledge
WES professionals have extensive knowledge of Internal Revenue Code Section 1031. Our library of resources can provide taxpayers and their advisors with important information regarding their particular situation. WES assists clients in developing strategic planning solutions while alerting them to applicable issues related to their exchange.

Commitment to Service
WES brings expertise, insight and professionalism to the exchange process, providing every customer unmatched service. Based on strength, stability and a strong commitment to customer service, Wachovia has become the qualified intermediary of choice for individuals, REITS and corporations.

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Wachovia does not provide tax or legal advice, nor can we make any representations or warranties regarding the tax consequences of your exchange transaction. Property owners must consult their tax and/or legal advisors for this information. Our role is limited to serving as qualified intermediary/accommodator to facilitate your exchange. The summaries of steps for qualified exchanges are for illustration purposes only and are not intended to be exhaustive and will vary depending on the complexity of the transactions.

FDIC basic insurance covers $100,000 per depositor per insured bank.

Capital Gain:

Generally speaking, this is the difference between the sales price of the relinquished property less selling expenses and the adjusted basis of the property.

IRC 1031 :

The Section of the Internal Revenue Code that specifies the terms and conditions under which certain types of property may be exchanged without recognition of capital gains tax.

Like-Kind Property:

This term refers to the nature or character of the property, not its grade or quality. Generally, real property is considered like-kind to all other real property as long as the properties are held for investment or productive use in a trade or business. However, for personal property exchanges the relinquished property and replacement property must be in either the same General Asset Class or Product Class.

Qualified Intermediary:

An independent third party acting on behalf of the taxpayer (exchangor) as a facilitator of the 1031 exchange.

LIKE-KIND EXCHANGES

Advantages of Choosing Wachovia as Your Qualified Intermediary:

Capital Gain:

IRC 1031 :

Like-Kind Property:

Qualified Intermediary: