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What Is 1031? also referred to as a 1031 Exchange or Like-Kind Exchange, and falls under Section 1031 of the Internal Revenue Code. This tax section deals with property value in sale of business or trades and other like sales. Contact us to get your property exchange prepared & filed by a qualified Identifying the Replacement Property professional. Need Help with 1031 issues ? Then contact us now >
 
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ยง 1031. Exchange of property held for productive use or investment...Read more law >

Related Hot Topics

    • Doing a Partial Exchange
    • Like-Kind Property
    • Identifying the Replacement Property
    • Exchange Formats
    • Starker Exchanges


    Different combinations are possible when doing a 1031 exchange.

    Improved property can be replaced with unimproved property, and vice versa.

Terms & Glossary about 1031

Ad Valorem Tax

Definition:
A tax levied in proportion to the value of the thing(s) being taxed. Exclusive of exemptions, use-value assessment laws, and the like, the property tax is an ad valorem tax

Tax Roll

Definition:
A list containing the descriptions of all parcels in the county, the names of the owners (or those receiving the tax bill), assessed values and tax amounts.

Recapture

Definition:
That portion of the gain from the sale of real estate that is taxed at ordinary income tax rates. Calculated as the difference between the accelerated depreciation taken and the straight-line depreciation that would have been allowed.

Negative Amortization

Definition:
A situation in which a borrower is paying less interest than what is actually being charged for a mortgage loan. The unpaid interest is added to the loan's principal. The borrower may end up owing more than the original amount of the mortgage.

Depreciation

Definition:
Decrease in the usefulness, and therefore value, of real property improvements or other assets caused by deterioration or obsolescence. (2) A loss in value as an accounting procedure to use as a deduction for income tax purposes.

Carrying Charges

Definition:
Various costs that are incidental to ownership (e.g., taxes insurance costs and maintenance expenses).

Did You Know ?
Different combinations are possible when doing a 1031 exchange.

Improved property can be replaced with unimproved property, and vice versa.

Need to get more information about Identifying the Replacement Property & 1031 issues? Then click here to contact us.