P

P
Partnership Split-Offs

This refers to the fact situation where the taxpayer may be a partnership or limited liability company and one or more partners or members wish to do an exchange of the property while other partners or members wish to cash out.  These types of transactions are complicated and benefit from the advice of the taxpayers’ tax professionals.

Personal Property Exchange

A transfer of personal property (or "chattel" as opposed to real-property) as part of a tax-deferred exchange transaction involving personal property held for trade, business, or investment. This type of exchange can be used to dispose of older property such as; collector cars, artwork, farm equipment, breeding stock, aircrafts, telecommunications equipment, heavy equipment, ect. - and replace it with newer like-kind equipment.

PITI

Principal, interest, tax and insurance; the components of a mortgage payment which may include property taxes and both property insurance and mortgage insurance.

Principal

An amount borrowed or the balance owed on a loan, excluding interest or the money that is used to pay down the balance owed on a loan.

Principal, Interest, Tax, and Insurance

(PITI) The components of a mortgage payment which may include property taxes and both property insurance and mortgage insurance.

Private Placement Memorandum

A private placement memorandum (PPM) is a legal document provided to prospective investors when selling securities in a business. It is also referred to as an offering memorandum or offering circular.

Product Classes

When attempting to determine if similar types of personal property are like kind to each other and the assets do not fall into one of the General Asset Classes, reference to the government published North American Industry Classification System may be used to determine if the assets share a common Product Class number.  If so, the assets are considered like kind for 1031 exchange purposes.

Promissory Note

A negotiable instrument in the form of a written, signed, unconditional commitment to pay a certain amount of money (principal and interest) either on demand or at a specified time.

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