Page 17 - Old Republic Title Exchange

R
U
N
TO
T
TURN TO
THE EXPERTS

Qualified Exchange Accommodation Agreement (QEAA) - A
written agreement whereby the EAT agrees to purchase and hold
title in a reverse or improved exchange.
Realized Gain - Gain that is not yet taxed. In a successful
exchange, the gain is realized but not recognized, i.e., not taxed.
Recognized Gain - Refers to the amount of gain that is subject
to tax.
Related Party - IRC §267(b) and 707(b)(1) defines related
party as any person or entity bearing a relationship to the
exchanger, such as: members of a family, including brothers,
sisters, spouse, ancestors and lineal descendants; a grantor or
fiduciary of any trust; two corporations which are members of
the same controlled group or individuals; and corporations and
partnerships, if the same person owns more than 50% of the
stock, capital or profits in these entities.
Relinquished Property (property sold) - The property disposed
of by the exchanger.
Replacement Property (property purchased) - The property
acquired by the exchanger.
Transfer Tax - A tax assessed by a city, county or state on the
transfer of property.

16