Common Terms & Definitions
Exchangor - The common term used for the entity or
individual who wishes to participate in a 1031 tax deferred
exchange.
Qualified Intermediary – Also known as a Facilitator
or Accommodator, is the party who transfers property and
receives proceeds.
Relinquished Property – The property which the
Exchangor currently owns and is going to exchange.
Exchange Credit – The funds received from the transfer
of the Exchangor’s relinquished property.
Replacement Property – The property which the
Exchangor acquires in the exchange.
Like Kind Property – Replacement property acquired in
an exchange must be of “like kind” to the property being
relinquished. All real property is of like kind, regardless of
whether it is improved or unimproved, and regardless of the type
of improvements.
Boot – Non like kind property received by the
Exchangor such as cash or a promissory note.
Boot is taxable. |
