Section 1031 Tax-free Exchange
Definition of "Section 1031 tax-free exchange"
Section of the Internal Revenue Code that addresses tax-free exchanges of certain property. The general provisions for a tax-free exchange of real estate are that the properties must be like-kind property; exchanged; and held for use in a trade or business or held as an investment. Delayed exchanges are permitted within certain limits.
Popular Real Estate Terms
The clear, open and active occupancy of real estate. For example, notorious possession is one of the tests for adverse possession. ...
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Restoring real property to an improved state. The restoration is usually needed because the property's condition has worsened. ...
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That which remains. As applied to real estate, it is the profit derived from rentals after subtracting all operating costs from the gross rental revenue. ...
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transfer of real property by legal means such as through inheritance. ...
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