Spectrus - Investment Real Estate Glossary - G
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- Gain
- The amount obtained for a property minus the property's adjusted basis, and transaction costs. No matter what the adjusted basis of a property is, there's no gain until the property is transferred. There are two types of gain: "realized gain" and "recognized gain." Realized gain is the difference between the total consideration (cash and anything else of value) received for a piece of property and the adjusted basis. Realized gain is not taxable until it is recognized. Gain is usually, but not always, recognized in the year that it is realized. If gain is not recognized in the year it is realized, it is said to be deferred. In an exchange under Section ยง1031, realized gain is recognized in part or in full to the extent that boot is received. (See Boot.) Where only like-kind property is received, no gain is recognized at the time of the exchange.
- Ground lease
- A lease which keeps the ownership of the land separate from that of the improvements. The landlord leases the land to the tenant, but the tenant owns the improvements.
- Growth factor
- Interest earned for the duration of the exchange that is payable at the end.
- Guarantee mortgage
- A mortgage that is guaranteed by a third party.
Please visit the Spectrus FAQ page for more answers to your investment real estate and 1031 exchange questions.
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