Listed below in the Glossary of Terms is commonly used terminology referenced in the Section 1031 Exchange documentation. For ease in use please pick the first letter of the term you are seeking.
A
Accomodator
The independent exchange agent who facilitates the 1031 exchange. Also known as a Qualified Intermediary
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B
Boot
Money or Other Property taken from the 1031 exchange transaction by the taxpayer is considered boot. The boot received by the taxpayer is taxable.
Money is considered cash or equivalent and also liabilities the taxpayer assumed from the other party.
Other Property includes non-like kind property (such as personal property received with the real property), property for personal use and seller (taxpayer) financing.
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D
Designation Period
The period the taxpayer has to identify the propertie(s) they will be purchasing in the Section 1031 exchange. The 45 days period begins with the transfer of the relinquished property or for the Reverse exchange upon the transfer of the replacement property.
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E
Equity Exchange
This is another name for the IRC Sec§ 1031 exchange.
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L
Like Kind exchange
Real property for real property (ex: land for duplex)
Personal property for Personal Property (ex. Boat for boat)
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Q
Qualified Intermediary (QI)
The independent exchange agent who facilitates the 1031 exchange. Also known as an accomodator
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R
Related Parties
Parties that are either members of your family or Individual and Corporate partnerships/S-corps when the individual owns directly or indirectly more than 50% of the value of the stock.
Relinquished Property
The property that the taxpayer is selling in the 1031 exchange process is the Relinquished property. Sometimes refered to as the first leg of the exchange.
Replacement Property
The property that the taxpayer is buying in the 1031 exchange process is the Replacement Property.Sometimes refered to as the second leg of the exchange.
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S
Safe-Harbor
The 180-day period starting the day the closing takes place on the sale of the relinquished property or for a reverse on the purchase of the replacement property.
Starker Exchange
This is another name for the IRC Sec§1031 Exchange.
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T
Tenants-in-Common
This is a type of group management real property investment that is allowed in the 1031 exchange.
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