1031 Exchange - The tax deferred sale and purchase of like-kind properties for the benefit of deferred gain treatment.

Boot – Cash or mortgage relief received in an exchange, resulting in a taxable gain.

Closing - The transfer of title of real property in a real estate transaction.

Exchange Equity - The cash and/or other property available at the time of closing on the sale of the relinquished property.

Exchange Period - The 180-day period beginning on the day property is relinquished and ending at midnight on the 180th day in which replacement property must be acquired.

Identification Period - The 45-day period beginning on the day the property is relinquished in which the replacement property must be identified.

In-Cash – The status when an investor has closed escrow on the relinquished property and is in the 45-day identification period of the 1031 exchange process. A Qualified Intermediary holds the money from the relinquished property’s sale while it is waiting to be reinvested into the replacement property.

Like-Kind – Like kind is defined in the tax code as meaning "similar in nature or character, notwithstanding differences in quality or grade". Real property is considered like kind and must be held for investment or held for productive use in a trade or business.

Qualified Intermediary - A disinterested third party who holds the funds from the relinquished property, and then releases the funds for the replacement property acquisition. Although the Treasury Regulations use the term "Qualified Intermediary," some companies use the term "facilitator" or "accommodator".

Relinquished Property - Investment property sold as part of an exchange.

Replacement Property - Investment property acquired as part of an exchange.

Section 1031 of the IRS code - The authorizing section of the IRS tax code that allows an investment property owner to defer capital gains.

"Starker Exchange" - A term used to describe delayed, non-simultaneous, exchanges established by Starker vs. United States (1979).

Tenancy In Common (TIC) - The sharing of property ownership among two or more persons in which each tenant holds an undivided interest in the entire property, either equally or in designated interests of differing sizes. TIC investors are considered separate owners of the real estate, sharing pro rata in the income, tax benefits, and appreciation of the property.  The properties usually employ professional asset and property management.