Boot
- is property which the taxpayer receives in the exchange which does not qualify as "like–kind–property". Cash proceeds and/or mortgage relief are the most common forms of boot. Boot is subject to taxation.

Deferred Exchange
- pertains to the exchange of one property for another that is similar in value. The capital gain tax owed on the sale of the property or item is put off until sale of the exchange property.

Direct Deeding
- is a transaction in which the relinquished property or a replacement property is deeded straight to a buyer as opposed to a qualified intermediary first.

Escrow
- is an agreement between two or more parties, requiring that all property, investments, monies be placed with a third party for safekeeping, pending the completion of predetermined requirements.

Exchange Period
- The 180 day period during which you must acquire the replacement property, commencing on the day that one transfers the relinquished property.

Identification Period
- is the 45-day period during which you must identify replacement property that begins on the day escrow is closed on the relinquished property.

In-Cash
- is the point at which an investor has closed escrow on the relinquished property and is during the 45-day identification period of the 1031 exchange.

Limited Partnership
- is a form of partnership in which there is one or more general partners, jointly and severally responsible as ordinary partners with liability, and one or more special partners, who are not liable for the debts of the partnership beyond the amount of cash they contribute/invest as capital.

Liquidity or liquid
- measures the ability to convert an asset to cash quickly.

Real Estate Provider
- is a real estate company that focuses on acquisition of institutional-grade investment property for the purposes of offering Tenants In Common investment opportunities.

Relinquished Property
- refers to the property that is given up in the 1031 exchange.

Replacement Property
- refers to the like-kind property received in the 1031 exchange.

Replacement Property Specialist
- is a professional investment consultant, experienced in identifying suitable replacement property for investors seeking to complete a 1031 exchange, as well as making other real estate investment recommendations. Abbreviation: RPS

Preservation of Capital®
- When the cost value of an investment is maintained or increased.

Section 1031 of the IRS code
- is the authorizing section of the IRS tax code that allows an investment property owner to defer capital gains and depreciation recapture taxes on a property sold.

Securities Licenses
- are required by securities law when investment advisors consult clients regarding TIC transactions and other investment interests in real estate. Replacement Property Specialists, should hold both Series 7 and Series 63 securities licenses.

Tax Basis
- in a property is equal to cost minus accumulated depreciation. When exchanging, the beginning basis is equal to the tax basis in the relinquished property, increased by any new cash (including any increase in non-recourse debt) that is paid in the acquisition of the replacement property. Tax basis is depleted through annual depreciation and increased by capital expenditure.

Taxpayer
- is the person conducting the 1031 exchange.

Trust
- is an arrangement whereby property is transferred to a third party Trustee by a grantor otherwise known as the Trustor. The trustee holds the property for the benefit of the Beneficiary.