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Daily Archives: October 7, 2017

Key Vocabulary for 1031 Exchanges

Key Vocabulary for 1031 Exchanges

If you’re new to the world of section 1031 of the IRS Tax Code, the terminology that comes along with these tax-saving exchanges can be confusing. To help you understand the phrases you will undoubtedly hear if you choose to complete a tax-deferred 1031 exchange, here’s a list of the key terms you will come across. Like-Kind: A term that refers to the nature or character of the property being exchanged. In order for the exchange to qualify for tax-deferred status, both the relinquished and replacement property must meet the IRS definition of like-kind. Boot: This is the fair market value of any non-qualified property you receive during the exchange. […]