Investor Glossary-section 1031Investor Glossary-section 1031Investor Glossary-section 1031Investor Glossary-section 1031Insightful 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

Section 1031

The HTML to link to this page
 

Section 1031 refers to a portion of the U.S. tax code according to which investors can defer payment of capital gains taxes if they exchange properties of a similar kind. Section 1031 stipulates that owners who sell one piece property to buy another don't have to pay taxes on proceeds from the sale. If and when a property is sold without a subsequent re-investment, section 1031 no longer applies. Section 1031 is primarily intended to cover cases where an exchange takes place for investment or business purposes. The concept underlying section 1031 is that exchanging one property for another achieves no economic gain, only transfers the location of economic value. Section 1031 does not make distinctions of quality between exchanged properties. Stocks, bonds, and other financial instruments are not covered by section 1031. Property outside the U.S. exchanged for property inside the U.S. and vice-versa is not covered by section 1031, because they are not considered like-kind.



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


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