Definitions

• Dentification Period - A maximum of 45 calendar days from the relinquished property closing to properly identify potential replacement property(ies).
   
• Exchange Period - The period of time in which replacement property must be received by the Exchanger. Ends on the earlier of 180 calendar days after the relinquished property closing or the due date for the Exchanger’s tax return (If the 180th day falls after the due date of the Exchanger’s tax return, an extension may be filed to receive the full 180 day exchange period.)
   
• Like-Kind Property - Like-kind refers to the type of property being exchanged. Investors can exchange any real estate investment for any other type of real estate investment. For example, vacant land can be exchanged for rental property. In most cases, their personal residence is not like-kind investment property.
   
• Mortgage Boot - This occurs when the Exchanger does not acquire debt that is equal to or greater than the debt that was paid off on the relinquished property sale; Referred to as “debt relief”. This creates a taxable event.
   
• Boot - To the extent that investors do not exchange even or up in value and/or exchange even or up in equity and debt, they will have received non-qualifying property (‘boot”) in their exchange. If a boot is received, tax is computed on the amount of gain on the sale of the amount of boot received, but not more than.