Section 1031(a)(3) and Section 1.1031(k)-1(c) provides that a written unambiguous description of the intended replacement property or properties, signed by the taxpayer must be sent to the qualified intermediary or other person who is a party to the exchange and who is not a disqualified person.

Any Replacements received within the 45-day Identification period are deemed to have been identified. Replacements received after the 45th day must have been properly identified in writing during the 45 day Identification Period. This period runs from the relinquished property sale date until midnight on the 45th day thereafter.

This refers to a type of exchange done where some of the proceeds of the sale of the relinquished property will be used to cause improvements to be added to the improvements already on the replacement property so that the taxpayer can complete the trade where both the value of the land and of the enhanced improvements will count for the amount the taxpayer traded for. For example a taxpayer may put in new heating, ventilating, air conditioning, roof and windows on the property. These types of exchanges are structured pursuant to IRS Rev. Proc. 2000-37 and are sometimes known as “property parking exchanges” and require the exchange facilitator to take on an additional role as a Qualified Exchange Accommodation Titleholder.

This is a rule that pertains to the requirement generally to identify or designate replacement property within forty-five days from the sale of the relinquished property. The rule states that should the replacement property include some incidental property that in a standard commercial transaction is normally transferred with the larger property and the incidental property does not have a value of more than 15% of the larger property, such incidental property does not have to be specifically identified. For example if an apartment building is being designated as replacement property and the furniture, laundry machines and other miscellaneous property does not make up more than 15% of the value of the replacement property, it does not need to be mentioned in the designation. Be wary, the rule only pertains to the identification process; the property still needs to be like kind to the relinquished property.

A charge paid by a borrower to a lender for the opportunity to borrow funds via a loan or the funds earned by an account owner/beneficiary on the amount held on deposit.

A person acting to facilitate an exchange under section 1031 and the regulations. This person may not be the taxpayer or a disqualified person. Section 1.1031(k)-1(g)(4)(iii) requires that, for an intermediary to be a qualified intermediary, the intermediary must enter into a written "exchange" agreement with the taxpayer and, as required by the exchange agreement, acquire the relinquished property from the taxpayer, transfer the relinquished property, acquire the replacement property, and transfer the replacement property to the taxpayer.

Internal Revenue Code (IRC). The comprehensive set of tax laws created by the Internal Revenue Service (IRS). This code was enacted as Title 26 of the United States Code by Congress, and is sometimes also referred to as the Internal Revenue Title. The code is organized according to topic, and covers all relevant rules pertaining to income, gift, estate, sales, payroll and excise taxes.

A suit pleaded between two or more parties to determine a matter of claim or right to assets held by a third party such as an escrow agent.