Knowledge Center

1031 & Alternative Investment Glossary

A plain-English glossary of the tax and investment terms behind 1031 exchanges, Opportunity Zones, oil & gas programs, and private alternatives — for accredited investors and their advisors.

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Clear, educational definitions of the terms that come up most often in tax-advantaged and alternative investing. Each entry explains what the term means, how it works, and where it fits — with authority citations where they strengthen accuracy. These pages are educational only and are not investment, tax, or legal advice.

1031 Exchange 9 terms

§10311031 ExchangeDefer capital gains by reinvesting into like-kind real property under §1031.Read the definition → LKPLike-Kind PropertyThe §1031 real-property standard for a qualifying exchange.Read the definition → 45/180Replacement PropertyThe like-kind property acquired to complete an exchange.Read the definition → QIQualified IntermediaryThe accommodator that holds proceeds to avoid constructive receipt.Read the definition → BOOTBootTaxable non-like-kind value received in an exchange.Read the definition → DSTDelaware Statutory TrustPassive, fractional 1031-eligible real estate ownership.Read the definition → TICTenants-in-CommonDirect, deeded fractional co-ownership of real estate.Read the definition → DST·TICDST vs. TICComparing two fractional 1031 ownership structures.Compare the two → §721721 Exchange / UPREITContribute property to a REIT operating partnership under §721.Read the definition →

Opportunity Zones 2 terms

QOZOpportunity ZoneDesignated communities under the 2017 TCJA and §1400Z-2.Read the definition → QOFQualified Opportunity FundThe vehicle used to deploy capital gains into a zone.Read the definition →

Oil & Gas 1 term

IDCIntangible Drilling CostsDeductible non-salvageable drilling expenses under §263(c).Read the definition →

Investor Basics 4 terms

REG DAccredited InvestorSEC Regulation D income and net-worth thresholds.Read the definition → §1250Depreciation RecaptureGain from prior depreciation, taxed under §1250/§1245.Read the definition → §1014Step-Up in BasisBasis reset to fair market value at death under §1014.Read the definition → COST SEGCost SegregationEngineering study that accelerates depreciation deductions.Read the definition →

This glossary is educational only and is not investment, tax, or legal advice. Several strategies described here involve private placements available only to accredited investors and carry significant risks, including illiquidity and possible loss of principal. Tax rules and thresholds are set by the IRS and SEC and can change. Confirm current rules and your specific situation with a qualified advisor and your CPA.

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