   
|
|
Section 1031
|
| FYI - For 2011, Dow up, Dogs of the Dow up more (double digits) |
| |
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...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: inflation, FICO score, EBITDA, labor relations, option premium, 1035 exchange, 144a, deferred revenue, limit order, balance sheet, ex-dividend date, dividends payable, command economy, current ratio, phantom income, required rate of return, average price per share, real GDP, FTSE, stock split, deferred tax, diluted share, margin rate, class C shares, debt service coverage, minority interest, open position, annual return, ex-dividend, 401a, risk management, reverse mortgage, covered put, in escrow, LIBOR, implied volatility, wholly-owned subsidiary, irrevocable trust, quality assurance, stock market close, liquidity ratio, cancelled check, 1031 exchange, APR, Key Rate Duration, Zero Cost Collar, per diem, retained earnings, VIX
|
|
| |