There's nothing unique about conducting a 1031 exchange in Utah compared to other states in the U.S. The rules and processes for a 1031 exchange, as outlined in Section 1031 of the Internal Revenue Code, apply uniformly across all 50 states and remain consistent whether you're exchanging properties in Utah or elsewhere in the country.
The Combined Rate accounts for Federal, State, and Local tax rate on capital gains income, the 3.8 percent Surtax on capital gains and the marginal effect of Pease Limitations (which results in a tax rate increase of 1.18 percent).
Standard deduction or personal exemption is structured as a tax credit. Utah provides a tax credit worth 6% of a $565 dependent deduction.
1031 Pros, LLC, based in Utah, specializes exclusively in 1031 exchanges, offering services for standard, delayed, reverse, and improvement exchanges. They emphasize a fast service, promising same-day setup if necessary and responding to all messages within the same business day. The company prides itself on reliability, with a team experienced in handling over 18,000 exchanges. They ensure transparency as a fully bonded and insured member of the Federation of Exchange Accommodators. For security, they use unique, individual accounts for each transaction with dual signature requirements, ensuring funds are moved only under client direction.
Exchange Services, LLC, a part of Zions Bancorporation and headquartered in Utah, serves as a qualified intermediary (QI) to securely hold funds in a qualified trust account during the period between the sale of your relinquished property and the purchase of replacement property. The company ensures the safety of your proceeds by placing them in FDIC-insured qualified trust bank accounts, which can be with or without interest, or in fully collateralized accounts. Zions Bank acts as the trustee with you as the beneficiary. These accounts are held with Zions Bancorporation affiliates like Zions Bank, California Bank and Trust, Vectra Bank, National Bank of Arizona, and Amegy Bank, with FDIC insurance up to $250,000. Exchange Services, LLC is not a member of the Federation of Exchange Accommodators.
First American Exchange Company, LLC, based in Utah, operates as a Qualified Intermediary for 1031 exchanges but does not engage in financial or real estate brokerage, agency, or sales. The company explicitly states that it does not provide financial, real estate, tax, or legal advice, and it encourages clients to consult with their own professional advisors. First American Exchange Company, LLC also disclaims any express or implied warranties regarding the information it presents and does not assume responsibility for any errors or omissions in its materials. The company is not a member of the Federation of Exchange Accommodators.
Northern Exchange, Inc., headquartered in Utah, specializes in facilitating 1031 exchanges, which are tax-deferred exchanges allowing property held for business or investment purposes to be sold and reinvested without immediate capital gains taxes. They emphasize the importance of using an experienced and knowledgeable Qualified Intermediary to ensure that each transaction complies with IRS rules and is handled correctly. Northern Exchange aims to simplify the process of understanding and completing a 1031 exchange through their website, which offers guidance and support. They are not members of the Federation of Exchange Accommodators.
