Understanding 1031 Exchanges | 1031 Exchange Glossary

A 1031 exchange is a swap of one business or investment for another. With 1031 exchange properties, you’ll either have no tax or limited tax due at the time of the exchange, which makes 1031 exchange properties immensely popular and often very lucrative. If you’ve been looking for 1031 exchange properties, but don’t understand a lot of the jargon associated with the industry, CRC Real Estate Consultants is here to help. Not only do we offer the very best commercial real estate consulting, but we’re also here to make finding 1031 exchange properties burden-free and easy. Below are a few terms you might hear during the 1031 exchange process:

  • Boot: “Non like-kind” property received. ‘Boot” is taxable to if there is capital gain.
  • Cash Boot: Any proceeds that are received by the exchanger.
  • Exchanger: Entity or taxpayer performing an exchange.
  • Direct Deeding: Transfer of title directly from the exchanger to buyer and from seller to exchanger after all exchange documents have been executed.
  • Exchange period: the period in time which replacement property must be received by the exchanger.
  • Identification Period: A maximum of 45 calendar days from the property closing to the replacement property.
  • Like-Kind property: Any property used for productive use in trade or business or held for investment.
  • Mortgage boot: Occurs when an exchanger does not acquire debt that is equal or greater than the debt that was paid off during property sale.
  • Qualified Intermediary: the entity who facilitates the exchange.
  • Relinquished property: property given up by the exchanger.
  • Replacement property: property received by the exchanger.

If you’re considering venturing into the world of 1031 exchange properties, browse available properties at 3NetProperties.com today. At CRC Real Estate Consultants, we’re here to help make your commercial real estate transactions as smooth and rewarding as possible. For any questions regarding 1031 exchanges or to speak to our qualified and professional consultants, contact us today!

With CRC Real Estate Consultants, we’ll work with you from the initial offer to the close, and are confident that we can help you make a smooth and rewarding real estate purchase. With over 25 years of experience in commercial real estate consulting, you can take solace in knowing that you’re in capable hands.


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