Investment glossary terms beginning with numbers:

1031 Exchange – Under Section 1031 of the U.S. Internal Revenue Code, the exchange of certain like-kind properties may allow for deferred recognition of capital gains or losses that are realized at the time of the exchange or sale. The deferral of gain recognition results in a deferral of any capital gains taxes that would otherwise be due. To qualify for a 1031 exchange, the properties exchanged must be held for investment or for productive use in a business or trade. Real property, whether improved or unimproved, generally qualifies under section 1031, whereas stocks and bonds are expressly excluded.

This entry was posted on Friday, January 29th, 2010 at 12:19 pm and is filed under Investment Glossary. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.