Accommodator/Intermediary
The company or individual who acts as a middle man in relinquishing the old property and acquiring the new properties, holds the funds, and ties the two transactions together.

Actual Receipt
Physical possession of proceeds.

Adjusted Cost Basis
The cost of the property plus capital improvements, less depreciation and capital losses.

Boot
Any cash received, reduction in mortgage, or any un-like property received in an exchange.  "Boot" is taxable to the extent of the capital gain.

Capital Gain
The difference in value between the adjusted cost basis and the net selling price, not the amount of cash received.

Deferred/Delayed Exchange
Your relinquished property is surrendered at one time and the new replacement property is acquired no later than 180 days from the closing of the relinquished property, or the due date for the tax return for the year of sale, whichever is earlier.

Direct Deeding
Transfer of title directly from the Exchanger to Buyer and from the Seller to Exchanger after all necessary exchange documents have been executed.

Equal or Greater Value
The replacement property must be of greater or net fair market value for the exchange to be fully tax-deferred.

Exchanger
The entity or taxpayer performing an exchange.

Exchange Period
The period of time in which replacement property must be received by the Exchanger; ends on the earlier of 180 calendar days after the relinquished property closing or the due date for the Exchanger's tax return.  (If the 180th day falls after the due date of the Exchanger's tax return, an extension may be filed to be entitled to the full 180 day exchange period.)

Identification Period
The exchanger must submit within 45 days of the closing of the relinquished property up to three potential replacement properties.  Identification must be specific addresses or legal descriptions with any improvements detailed as clearly as possible.

IRC 1031
The Section of the Internal Revenue Code which specifies the terms and conditions under which taxpayers may exchange certain types of property without recognition of capital gains taxes.

Like-Kind Property
Almost any non owner-occupied property used for productive use in trade or business or held for investment.

Qualified Intermediary
The entity who facilitates the exchange: (1) Not a related party (i.e., agent, attorney, broker, etc.) (2) Received a fee (3) Receives the relinquished property from the Exchanger and sells to the buyer (4) Purchases the replacement property from the seller and transfers it to the Exchanger.

Relinquished Property
Property given up by the Exchanger; referred to as the sale, "down leg" or "Phase I".

Replacement Property
Property received by the Exchanger: referred to as the purchase, "up leg" or "Phase II".