Assessor

Definition:
A government official who is responsible for determining the value of a property for the purpose of taxation.

Tax Base

Definition:
Assessed valuation of real property, which is multiplied by the tax rate to determine the amount of tax due.

Curtailments

Definition:
The borrower's privilege to make payments on a loan's principal before they are due. Paying off a mortgage before it is due may incur a penalty if so specified in the mortgage's prepayment clause.

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Terms & Glossary about 1031

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.

Like-Kind Property

Definition:
A tax term used in certain real property exchanges. Property must be exchanged for like-kind property and the tax consequences postponed pursuant to Section 1031 of the Internal Revenue Code.

Tax Base

Definition:
Assessed valuation of real property, which is multiplied by the tax rate to determine the amount of tax due.

Carrying Charges

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

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.

Did You Know ?

Although not really a technical term, the word "boot" is used frequently in the world of Section 1031. Boot is another way of saying a property is not "Like-Kind".

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