Thomas E. St. Jean is Senior Vice President and Manager of Brookline Bancorp 1031 Exchange Services LLC. Tom is responsible for the strategic, operational, and business development activities of Brookline Bank’s 1031 Exchange Services, and has provided Qualified Intermediary services for the last 24 years. Prior to starting the exchange business at Brookline Bank, Tom held senior positions at two other bank-owned Qualified Intermediaries. He also co-founded a Qualified Intermediary business that was subsequently sold to a publicly traded bank.
Prior to his work in the tax deferred exchange industry, St. Jean spent more than 10 years in real estate capital markets. He held senior positions at AEW Capital Management, FleetBoston Robertson Stephens, and Chase Manhattan Bank, and has been an active member of several real estate industry groups and the Federation of Exchange Accommodators (FEA). St. Jean holds a BA in Economics from Providence College.
1. What is a 1031 Exchange?
Per Section 1031 of the Federal Tax code, a 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.*
2. How does it benefit the seller of a property?
Besides the deferral of tax, 1031 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.
3. Can Brookline Bank work on 1031 Exchanges anywhere in the U.S.?
While most of our exchange activity is in the northeast, we can and have assisted real estate investors all over the country.
4. What are the key elements that need to occur to set 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.
5. What is the Bank’s experience in 1031 Exchanges?
Brookline Bank has been providing like-kind exchange services for 12 years. The team of six bank employees handles over 300 exchanges per year, totaling transaction value in excess of $1 billion annually. Click here for more information on Brookline Bank’s 1031 Exchange services.
*Please consult your tax advisor for tax related questions.
Brookline Bancorp, Inc. and Berkshire Hills Bancorp, Inc. have announced definitive plans to merge to create a powerful, regional banking franchise serving the Northeast. Learn More Here