Spectrus – Glossary – S
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- Safe harbor
- In a 1031 exchange, the term identifying the requirements to protect the exchanger's money and the "qualified intermediary."
- Simultaneous exchange
- In a 1031 exchange, this is also referred to as a concurrent exchange when the exchanger transfers out of the relinquished property and receives the replacement property at the same time.
- Starker exchange
- In a 1031 exchange, a term used to describe delayed exchanges. "Starker vs. Commissioner" established the delayed exchange concept. The term "Starker exchange" is used as another way of referring to delayed, deferred or any other non-simultaneous exchange.
- Stepped-up basis
- An income tax term used to describe a change in the adjusted tax basis of property, allowed for certain transactions. The old basis is increased to market value upon inheritance, as opposed to a carry-over basis in the event of a tax-free exchange. Example: Dooley dies, leaving land worth $100,000. The land was purchased for $20,000, but the heirs receive a stepped-up basis to the fair-market value at death. The $80,000 unrealized gain to Dooley escapes capital gains tax.
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