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


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
©2004-2016 Investor Glossary - All rights reserved - Terms of Use