Zions Bank's 1031 Exchange Services Surpasses $100 Million in Deposits, Despite Challenging Real Estate Market

SALT LAKE CITY, July 26 /PRNewswire-FirstCall/ -- Zions Bank's 1031 Exchange Services has reached $100 million in cumulative deposits since its launch just two years ago.  The milestone is significant in light of an economic headwind and lack of confidence among real estate buyers and sellers.

"We're reminding clients that even in the slow real estate market, they shouldn't just give up on property investment, and sell to pay taxes now," said Mike Anderson, senior vice president and director of Zions Bank's 1031 Exchange Services.  "We're reassuring them that there are options for changing property investments and growing their wealth without cashing out and potentially paying taxes unnecessarily.  After all, economists remain optimistic about the long-term growth opportunities in Utah and Idaho."

A tax-deferred exchange under Section 1031 of the Internal Revenue Service Code allows for the sale of investment properties and the acquisition of "like-kind" properties while deferring federal — and possibly state — capital gains taxes.  An independent party must act as a qualified intermediary to hold funds between the sale of the relinquished property and the purchase of the replacement property.  

But in the historically unregulated exchange industry, qualified intermediaries range from disciplined to weak. Over the past three years, more than $700 million has been lost by qualified intermediary failures nationwide.  Because Zions Bank is heavily regulated, however, clients can rest assured that their exchange funds are held in a reputable institution that offers FDIC insurance up to $250,000. Additionally, a temporary FDIC program provides coverage for non-interest bearing deposit accounts of any size through the end of 2010. Customers pay a flat fee for the exchange service and keep all of the interest earned in their qualified trust account, which requires written customer approval for access to the funds.  

Zions Bank's 1031 Exchange Services is staffed by dedicated professionals who hold Certified Exchange Specialist designations through the Federation of Exchange Accommodators.  The group is known for its excellent customer service, rated as a 9.38 on a one-to-ten scale in client surveys.

Zions has completed exchanges in real estate, aircraft, radio equipment, oil and gas subsurface rights, office buildings, medical offices, land, duplexes, condos, and rental homes throughout the country — from Utah and Idaho to New York and Alabama. More information is available at www.bankexchangeservices.com.

Zions Bank, a subsidiary of Zions Bancorporation (Nasdaq: ZION), is Utah's oldest financial institution and is the only local bank with a statewide distribution of branches, operating 105 full-service branches throughout Utah. Zions Bank also operates 26 full-service branches in Idaho. In addition to offering a wide range of traditional banking services, Zions Bank is also a leader in small business lending and has ranked as the No. lender of U.S. Small Business Administration 7(a) loans in Utah for the past 15 consecutive years. Founded in 1873, Zions has been serving the communities of Utah for more than 135 years. Additional information is available at www.zionsbank.com.

SOURCE Zions Bank