Spectrus – Investment Real Estate Glossary – C
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- Capital gain
Gain on the sale of a capital asset. There are limits on the deduction of capital losses against ordinary income. Example: Collins purchases land for investment purposes for $10,000. Thirteen months later she sells it for $14,000. She reports the $4,000 profit as a long-term capital gain on her income tax return.
Learn more at the Spectrus Capital Gains Calculator page. - Capitalization rate
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A rate of return used to derive the capital value of an income stream. The formula is value equals
annual income divided by the capitalization rate.
- Class A property
- Most prestigious buildings competing for premier office users with rents above average for the area. Buildings have high-quality standard finishes, state of the art systems, exceptional accessibility, and a definite market presence.
- Concurrent exchange
- Also referred to as a simultaneous exchange when the exchanger transfers out of the relinquished property and receives the replacement property at the same time.
Please visit the Spectrus FAQ page for more answers to your investment real estate and 1031 exchange questions.
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