Upgrade to remove ads
CONTRACT FOR DEEDS
Terms in this set (13)
installment sales contract, an installment land contract, or a contract for deed
As the buyer pays these installments over time, the buyer begins to pay off the property. Once the contract is paid in full, the seller turns over the deed to the buyer.
Ownership interest in the property that is enforceable by law
Financial or "equitable" interest in the property
1031 tax defered exchange
A properly structured exchange can provide investors with the opportunity to defer all of their capital gains taxes.
LIKE KIND EXCHANGE
the owner of real property can sell that property and then reinvest the proceeds in a "like-kind" property, and defer paying any capital gains taxes.
If your clients find and close on an investment property and then decide to sell another property, they can do a tax deferral "backward."
How many days does an investor who wants to do a 1031 tax-deferred exchange have from the day of closing on one property to identify and commit in writing to the next property?
How many days does an investor who wants to do a 1031 tax-deferred exchange have from the date of sale of Property #1 on Property #2?
Who may legally conduct a 1031 tax-deferred exchange?
What happens if the investor fails to reinvest all the proceeds from one property into the next when doing a tax-deferred exchange?
any cash proceeds the investor retains will be taxable
three property rule
An investor can identify up to three replacement properties with no fair market value restriction, provided they meet the debt load requirement.
95 % rule
An investor can exchange multiple properties as long as the properties total at least 95% of the value of the relinquished property.
200 % rule
When exchanging more than one property, the combined fair market value of the properties can't be more than 200 percent of the value of the relinquished property.
Other sets by this creator
TEXAS STATE AND LOCAL PROGRAMS
LEGISLATION RESULTING FROM THE SUB PRIME MORTGAGE…
federal legislation relevant to the real estate in…
TREASURY, FDIC, FEDERAL HOME LOAN BANK SYSTEMS
Other Quizlet sets
Ch 13 patho week 2 reading quiz prep
EC 340 Exam 3
American History 1 Practice Test 2 Study
Regulating Body Temperature: Brain Mechanisms for…