Non-Qualifying Investment

DEFINITION of 'Non-Qualifying Investment'

An investment that does not qualify for any level of tax-deferred or tax-exempt status. Investments of this sort are made with after-tax money. They are purchased and held in tax-deferred accounts, plans or trusts. Returns from these investments are taxed on an annual basis.

BREAKING DOWN 'Non-Qualifying Investment'

Some examples of investments that do not usually qualify for tax-exempt status are antiques, collectibles, jewellery, precious metals and art. Other investments that may not qualify for any sort of tax precedence are stocks, bonds, REITs and any other traditional investment that is not bought under a qualifying investment plan or trust.

RELATED TERMS
  1. Trust

    A fiduciary relationship in which one party, known as a trustor, ...
  2. Real Estate Investment Trust - ...

    A REIT is a type of security that invests in real estate through ...
  3. Annuity

    A financial product that pays out a fixed stream of payments ...
  4. Precious Metals

    A classification of metals that are considered to be rare and/or ...
  5. Tax Deferred

    Investment earnings such as interest, dividends or capital gains ...
  6. Qualifying Investment

    An investment purchased with pretax income. Money invested in ...
Related Articles
  1. Saving and Spending

    How to Invest Your Excess Cash in Growth Stocks

    Understand the choices that must be made when using excess cash to invest in growth stocks, including different investment vehicles.
  2. Retirement

    Retirement Tips for Lawyers

    Learn valuable tips that lawyers can use to prepare themselves financially, mentally and emotionally for a great new life in retirement.
  3. Bonds & Fixed Income

    Explaining Types Of Fixed Annuities

    Learn about this popular retirement tool, its pros and cons and how annuities work to create a guaranteed regular stream of retirement income.
  4. Options & Futures

    20 Investments You Should Know

    To take advantage of all your investing options, you need to know what your choices are. Here we tell you about the diverse features and advantages of 20 different financial instruments.
  5. Investing News

    This Is What Carlos Slim's Portfolio Looks Like (GCARSOA1, PEP)

    Find out how the once-richest man in the world, Carlos Slim, invests his money to ensure that he doesn't lose his billionaire status.
  6. Taxes

    How Are Collectibles Taxed?

    If you plan to sell collectibles, it's imperative that you know the tax implications.
  7. Saving and Spending

    How to Value Art and Dodge the IRS on Death Taxes

    Appraising artwork can be a very inexact process, and an estate could face penalties from the IRS for undervalued works. Here's how to best price art.
  8. Tax Strategy

    Profit from Art with a Charitable Remainder Trust

    With a CRUT, art collectors can avoid capital gains taxes on the sale of art– while also leaving their favorite charity a legacy.
  9. Personal Wealth & Private Banking

    5 Reasons to Invest in Mid-Century Modern Furniture

    Look for original pieces from the mid-20th century (not reproductions) as worthwhile investments – and get the pleasure of living with them, too.
  10. Saving and Spending

    Why the Classic Car Boom Might Be Ready to Bust

    The collectible car market has grown spectacularly, but recent numbers show that it may be heading for a correction.
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center