Investor Glossary-1031 exchangeInvestor Glossary-1031 exchangeInvestor Glossary-1031 exchangeInvestor Glossary-1031 exchangeInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

1031 Exchange

The HTML to link to this page
 

For tax purposes, a 1031 exchange is a real estate transaction involving the sale of one property with the tax on the capital gain deferred because of the qualified purchase of another like-kind property in exchange. For 1031 exchange purposes, the term like-kind property is interpreted as any type of investment property, rather than property owned for personal use. A delayed 1031 exchange, or Starker exchange, involves a purchase that closes within 180 days of the sale. A newer variant is the reverse 1031 exchange, in which the sale occurs after the associated purchase. The 1031 exchange rules continue to be refined. Although the 1031 exchange rules are somewhat complex, the effect of breaking them is straight forward. If the IRS determines there was no valid 1031 exchange, sales proceeds may be subject to capital gains tax. The 1031 exchange is a great tax avoidance vehicle for real estate investors. The term 1031 exchange derives from section 1031 of the US Internal Revenue Code of 1986.



Rate this 1031 exchange definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, annual return, irrevocable trust, ex-dividend, inflation, open position, Zero Cost Collar, stock split, quality assurance, Key Rate Duration, deferred revenue, APR, reverse mortgage, minority interest, phantom income, debt service coverage, option premium, real GDP, LIBOR, balance sheet, 1035 exchange, diluted share, ex-dividend date, 144a, command economy, class C shares, cancelled check, in escrow, VIX, covered put, per diem, labor relations, required rate of return, FTSE, wholly-owned subsidiary, FICO score, limit order, implied volatility, dividends payable, liquidity ratio, retained earnings, EBITDA, deferred tax, stock market close, margin rate, current ratio, 401a, risk management, 1031 exchange


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use