property law

Qualified intermediary

Definition

In a 1031 exchange, a person who acquires business or investment property from a taxpayer, sells that property, uses the proceeds therefrom to acquire like-kind business or investment property for the taxpayer, and then transfers the like-kind property to the taxpayer. A taxpayer who uses a qualified intermediary to conduct a 1031 exchange can defer payment of capital gains tax on the sale of his or her property.

 

intangible property

Property without a physical existance. 

Some intangible property might have a paper embodiment, (such as stocks, bonds, or certificates) but other intangible property does not (goodwill, intellectual property, reputation).  Due to this characteristic, intangible property may be difficult to value, but is still a form of property.

 

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fair market value

 The value of property as determined by the market place (or objective purchasers) rather then as determined by a subjective individual.  This is what an informed and unpressured buyer would pay to an informed unpressured seller in an arms length transaction (the price is based solely on the value of the property, as opposed to if you were selling the property to a family member and giving them a special deal).

 

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