Spectrus - Investment Real Estate Glossary - I
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- Identification period
- In a 1031 exchange, the replacement property must be identified within 45 days of the close of escrow/closing the relinquished property. If the 45th day happens to fall on a weekend or legal holiday, it is not to be extended.
- Income property
- Real estate that generates cash flow
- Interest
- The fee charged for borrowing money
- Interest rate
- The rate of interest charged for the use of money, usually expressed at an annual rate.
- Intermediary
- The party who facilitates a 1031 tax deferred exchange by acquiring and selling property in an exchange. The intermediary plays a role in almost all exchanges these days. He or she neither begins nor ends the transaction with any property. He or she buys and then resells the properties in return for a fee.
- Internal Revenue Code Section 1031
- Section 1031 of the Internal Revenue Code allows an investor to defer his capital gain and depreciation recapture income tax liabilities when he exchanges relinquished property for like-kind or like-class replacement property.
- Investment property
- A property that is not occupied by the owner.
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