Plain definitions for the terms that show up across every strategy guide.
A like-kind exchange that defers capital gains tax when proceeds are reinvested into qualifying property within the 45-day and 180-day windows.
Your investment in a property for tax purposes — cost plus improvements, minus depreciation.
A provision allowing a large share of qualifying asset cost to be deducted in the first year, subject to a phase-down schedule.
Non-like-kind value received in an exchange — cash or debt relief — that becomes taxable within an otherwise deferred 1031.
An engineering-based study that reclassifies building components into shorter recovery periods.
A trust holding institutional real estate in fractional interests, used as a passive, 1031-eligible landing spot.
Tax owed at sale on previously claimed depreciation, generally taxed at a higher rate than long-term capital gains.
A dollar-for-dollar federal credit for qualifying investments such as solar installations.
Real property held for investment or business use that qualifies for exchange treatment.
A designated tract where reinvested gains, routed through a Qualified Opportunity Fund, can be deferred and potentially excluded after ten years.
Interior, non-structural improvements to non-residential buildings, eligible for a 15-year recovery period.
Stock in an eligible C-corporation that, under §1202, can qualify for a substantial exclusion of gain on sale.