Investor Glossary-investment propertyInvestor Glossary-investment propertyInvestor Glossary-investment propertyInvestor Glossary-investment propertyInsightful stock market charts - Click here
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

Investment Property

The HTML to link to this page

Real property owned by an entity for other than its own use is an investment property. In other words, investment property is real estate held for portfolio purposes. Significant features of the US tax code make investment property a tax advantaged asset class. Most notably, under the IRS section 1031 exchange provisions, the taxable gain on the sale of investment property can be deferred indefinitely by exchanging the investment property for another "like kind" property, where "like kind" has gradually become loosely interpreted as meaning any other investment property (or group of properties) of equal or greater value. An investment property does not have to be held for profit. In New York City, some major landlords lease entire office buildings to non-profit organization tenants for tax purposes. An individual's home is not classified as an investment property, but homeowners nevertheless commonly speak of their home as an investment. Similarly, an industrial concern's wholly owned operating site is a user property, rather than an investment property.

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

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