Replacement Property
Replacement property is the like-kind investment or business-use real estate acquired by the investor as part of a 1031 exchange. To qualify, it must generally be properly identified within 45 days and acquired within 180 days of the relinquished property sale.
Relinquished Property
Relinquished property is the investment or business-use real estate that an investor sells as part of a 1031 exchange. The proceeds from its sale must be handled properly through a qualified intermediary in order to preserve tax deferral.
Relinquished Property
In a 1031 exchange, the relinquished property is the property being sold.
Real Estate Investment Trust (REIT)
A company that owns and operates income-producing real estate. REITs can focus on a specific asset class or subclass, or they can be general in nature.
Reverse 1031 Exchange
1031 tax-deferred exchanges generally fall into three categories: delayed, reverse, and build-to-suit. While delayed 1031 exchanges are the most common, real estate investors use a reverse 1031 exchange when they must close on the replacement property before the relinquished property is sold. Learn more about reverse exchanges.
