Any asset held by a taxpayer except certain property excluded under IRC Section 1221. Capital assets are often tangible property which cannot easily be converted into cash and which are usually held for a long period, including real estate, buildings, machinery, fixtures, furniture and equipment.

Calculation of the difference between the sales price of the relinquished property less selling expenses and less the adjusted basis of the relinquished property.

Tax imposed on a gain from the sale or disposition of a capital asset.

Cash, or anything else of value, received by the taxpayer.

Violation of the G(6) limitation wherein the taxpayer or the taxpayer’s agent obtains direct or indirect control over the exchange proceeds through an agent or employer or other person during the exchange period.

The day-to-day administration of a periodic payment contract which includes sending monthly payment statements and collecting monthly payments, maintaining records of payments and balances, remitting funds to the lender, and following up on delinquencies.

A provision in a purchase and sale agreement that states that either the buyer or seller intends to conduct a 1031 exchange and reserves the right to assign its interest in the purchase and sale agreement to a qualified intermediary. The clause also typically elicits the other parties to assist in signing applicable 1031 documents.

Taxpayer's cost of acquiring the property.