Key Words 1
An increase in the worth or value of a property.
What is APPRECIATION?
The net spendable income from an investment after deducting expenses.
What is CASH FLOW?
Accounting concept that allows an investor to recover the cost of an income-producing asset by way of tax deductions over the period of the asset's useful life.
What is DEPRECIATION?
A transaction in which all or part of the consideration for the purchase of real property is the transfer of like kind property.
What is EXCHANGE?
Direct deduction from tax due.
What is TAX CREDIT?
Property held for producing income as well as for a profit on its sale.
What is INCOME PROPERTY?
A written instrument that should be given at closing of a business sale for all chattel, stock, materials, etc.
What is a BILL OF SALE?
The income from a real estate investment, calculated as a percentage of cash invested.
What is RETURN?
The use of borrowed money to finance investments.
What is LEVERAGE?
Not highly liquid, need expert advice, management decisions need to be made, property might decrease
What are the DISADVANTAGES OF REAL ESTATE INVESTMENT?
Money or property given to make up a difference in value or equity between two properties in an exchange.
What is BOOT?
Profits realized from the sale of real estate
What are CAPITAL GAINS?
A method of reporting income received from the sale of real estate when the sales price is paid in two or more installments over two or more years.
What is an INSTALLMENT SALE?
Income tax calculations for investors in which the rate at which the top dollar is taxed.
What is MARGINAL TAX RATE?
Method by which an investor's holdings can be increased without investment of any additional capital.
What is PYRAMIDING?
Joining together of two or more people or firms to carry out one or more business projects.
What is a SYNDICATE?
Must have at least 100 investors and at least 75% of the income must come from real estate.
Regulates the transfer of personal property.
What is the UNIFORM COMMERCIAL CODE(UCC)?
Noncompliance with this law is a criminal offense in New Jersey.
What is the BULK TRANSFER ACT?
Person who sells or negotiates the sale of businesses for others for a fee.
Who are LICENSED REAL ESTATE BROKERS?
Original cost plus improvements, minus depreciation
What is ADJUSTED BASIS?
IRS regulations for investors with too much tax shelter
What is TAX ALTERNATIVE MINIMUM TAX?
Tax accountant, Attorney, or Investment Specialist who can give expert advice
Who are people brokers & salespersons should always refer potential real estate investors?
Article 6 of the Uniform Commercial Code
Business venture in which a group of people pool their resources to develop a particular piece of property.
What is a REAL ESTATE INVESTMENT SYNDICATE?