Recourse Debt is a loan where the lender can pursue the borrower’s other assets beyond the collateral property if the loan defaults. Related Terms
Glossary Terms: 52 terms
Section 1231 Gains and Losses are tax rules affecting the treatment of gains or losses from the sale of depreciable business property or real estate, where gains are taxed at favorable capital gains rates and losses are treated as ordinary losses. Related Terms
Section 1231 Gains and Losses
The Section 179 Deduction is a tax deduction allowing businesses to deduct the full cost of qualifying property or equipment in the year it’s placed in service. Related Terms
Section 179 Deduction
A Self-Directed 401(k) (SD401k) is a self-directed 401(k) plan allowing investments in alternative assets like real estate, with flexible contribution and loan options. Related Terms
Self-Directed 401(k) (SD401k)
Self-Directed IRA (SDIRA) is a retirement account allowing investments in alternative assets, such as real estate, with unique tax benefits and compliance rules. Related Terms
Self-Directed IRA (SDIRA)
Seller Financing is an arrangement where the property seller provides a loan to the buyer, allowing the buyer to purchase the property with installment payments and often allowing for flexible terms and potential tax benefits. Related Terms
Seller Financing
Short-Term Rentals are properties that are rented for an average of 7 days or less, subject to specific tax rules and local regulations. Related Terms
Short-Term Rentals
Stepped-Up Basis is an adjustment to the cost basis of an inherited property to its fair market value at the time of the owner’s death, reducing capital gains taxes upon sale. Related Terms
Stepped-Up Basis
Syndications are partnerships where multiple investors pool resources and collectively purchase, manage, and profit from real estate investments. Related Terms
Syndications
Tax Basis Adjustments are changes made to the original cost basis of a property due to improvements, depreciation, or other transactions, impacting capital gains calculations. Related Terms
Tax Basis Adjustments
Tax Deferral Strategies are methods to postpone paying taxes on gains, such as 1031 exchanges, installment sales, and opportunity zone investments. Related Terms
Tax Deferral Strategies
Unrelated Business Taxable Income (UBTI) is income earned by tax-exempt entities from unrelated business activities, which can be taxable, even for IRAs and nonprofit organizations. Related Terms
