D

D
Debt Crowdfunding

Also known as peer-to-peer lending, investors apply online and lend money to a business and are repayed with interest on these loans.

Deferred Exchange

A 1031 exchange conducted under the safe harbor 1991 Treasury Regulations wherein the replacement property is received up to 180 days after the disposition of the relinquished property. Typically what people mean when referring to a 1031 exchange, Starker exchange, like-kind exchange, delayed exchange, etc.

Depreciable Basis

Also tax basis.  Generally a property’s acquisition cost, subject to immediate reductions by costs to place in service and other deductions / credits. This beginning basis serves as a starting point for ongoing reductions through allowances for depreciation.  After accounting for depreciation allowances, the tax basis is often referred to as the property’s adjusted tax basis.

Depreciation Deductions

The tax deduction for writing off the cost of theoretical wear and tear of property and business-assets over an IRS-specified number of years.

Depreciation Recapture

A procedure for collecting income tax on a gain realized by a taxpayer when disposing of an asset that had previously provided an offset to ordinary income for the taxpayer through depreciation.  The difference between the asset's sale price and tax basis is "recaptured" by being reported as income.

Designation Notice

The written identification notice prepared and delivered by the taxpayer in conformity with Treasury Regulations Section 1.1031(k)-1(c) and timely delivered to the qualified intermediary unambiguously identifying the intended replacement property.

Designation Period

(“Identification Period”) The period that begins on the date the relinquished property is transferred and ends at midnight on the 45th day thereafter.

Direct Deeding

At the direction of the qualified Intermediary, title passes directly to the ultimate owners without the qualified intermediary being in the actual chain of title.

Disqualified Person

Section 1.1031(k)-1(k) defines a disqualified person to include an agent of the taxpayer at the time of the transaction including a person that has acted as the taxpayer's employee, attorney, accountant, investment banker or broker, or real estate agent or broker within two years of the taxpayer's transfer of relinquished property. However, in determining whether a person is a disqualified person, services provided by such person for the taxpayer with respect to section 1031 exchanges of property and routine financial, title insurance, escrow, or trust services provided to the taxpayer by a financial institution, title insurance company, or escrow company are not taken into account.

Donation Crowdfunding

Non-profits and social organizations source money for purposes involving charitable projects.

SPEAK WITH US FOR FREE