Table of Contents
- 1 What is exchange-value in real estate?
- 2 What is a 1031 property?
- 3 What kind of property qualifies for a 1031 exchange?
- 4 How does Marx define money?
- 5 Does 1031 apply to primary residence?
- 6 How long must you hold 1031 property?
- 7 What is the difference between exchange-value and value?
- 8 What do you call the difference in value in an exchange?
- 9 Which is an example of market value in exchange?
What is exchange-value in real estate?
Definition of “Value in exchange” Giving money, a good, or service that is worth something in exchange for another good or service provided by the other party. An example is paying cash for the market price of a home.
What is a 1031 property?
A 1031 exchange gets its name from Section 1031 of the U.S. Internal Revenue Code, which allows you to avoid paying capital gains taxes when you sell an investment property and reinvest the proceeds from the sale within certain time limits in a property or properties of like kind and equal or greater value.
What kind of property qualifies for a 1031 exchange?
As mentioned, a 1031 exchange is reserved for property held for productive use in a trade or business or for investment. This means that any real property held for investment purposes can qualify for 1031 treatment, such as an apartment building, a vacant lot, a commercial building, or even a single-family residence.
What is meant by the term exchange-value?
EXCHANGE-VALUE: The usefulness of a commodity vs. the exchange equivalent by which the commodity is compared to other objects on the market. The more labor it takes to produce a product, the greater its value.
What does Marx mean by exchange-value?
Marx regards exchange-value as the proportion in which one commodity is exchanged for other commodities. Exchange-value, for Marx, is not identical to the money price of a commodity.
How does Marx define money?
According to Marx, money is the product of commodity economy. Under the condition of non-commodity economy, the general human labor does not manifest itself as value, and there is no contradiction between use value and value, concrete labor and abstract labor, social labor and individual labor, so there is no money.
Does 1031 apply to primary residence?
A 1031 exchange generally only involves investment properties. Your primary residence isn’t typically eligible for a 1031 exchange. Even a second home that you live in some of the time is ineligible if you don’t treat it as an investment property for tax purposes.
How long must you hold 1031 property?
If a property has been acquired through a 1031 Exchange and is later converted into a primary residence, it is necessary to hold the property for no less than five years or the sale will be fully taxable.
What is another name for a like-kind exchange?
A like-kind exchange is also known as a 1031 exchange or a Starker exchange.
What does Marx mean by value?
Value (without qualification) is the labor embodied in a commodity under a given structure of production. Marx defined the value of the commodity by this third definition. In his terms, value is the ‘socially necessary abstract labor’ embodied in a commodity.
What is the difference between exchange-value and value?
Uses can’t be quantitatively compared. 2. The exchange-value of a commodity is the proportions at which it exchanges with other commodities. Value, in the way Marx uses the term, is the means by which the labors of isolated producers are coordinated through commodity exchange.
What do you call the difference in value in an exchange?
Like-kind properties in an exchange must be of similar value as well. The difference in value between a property and the one being exchanged is called boot. If a replacement property is of lesser value than the property sold, the difference (cash boot) is taxable.
Which is an example of market value in exchange?
In some situations the market value in exchange might be very similar to the use value of a property. An example of this might include a multi-tenant shopping center. Here, the highest and best use of the property might be the same as the specific use for which it is being used.
Can you exchange one property for multiple properties?
For example, you can exchange one property for multiple replacement properties and vice versa: you can exchange multiple properties and for one larger property. As long as the new properties are like your original properties, you’re good to go. Do yourself a favor and get a good qualified intermediary to assist you.
What does reverse exchange mean in real estate?
A reverse exchange, also known as a forward exchange, occurs when you acquire a replacement property through an exchange accommodation titleholder before you identify the replacement property. In theory, this type of exchange is very simple: you buy first and you pay later.