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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use