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


Home | 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