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Accommodator

Same as intermediary, facilitator, or Qualified Intermediary. The party who facilitates a tax-deferred exchange by acquiring and selling property in an exchange to aid the taxpayer in complying with Section 1031 and all applicable rules.

Actual Receipt

Having direct access to exchange funds or other property. Actual receipt of exchange funds during the exchange period is cause for disqualification of the tax deferred exchange. Compare to Constructive Receipt, below.

Adjusted Basis

The basis of the property adjusted for any capital improvements made to the property or depreciation taken. To calculate the adjusted basis, take the original cost basis (the cost of the property), and add the cost of any capital improvements that have been made to the property during the term of ownership. Then subtract any depreciation taken on the property during the same period. Once the adjusted basis is known, gain or loss can be computed on a transaction.

Assignment Agreement

Agreement between the Exchanger and the Qualified Intermediary. This agreement is a required Safe Harbor under the deferred exchange regulations when there are direct transfers of qualifying Relinquished Property and/or Replacement Property.

Assignment of Contract Rights

When a taxpayer is doing a delayed exchange, it has to link the sale and the later purchase together as an exchange of the one for the other. This is accomplished by transferring the relinquished property to the qualified intermediary and receiving back the replacement property from the qualified intermediary. In order to make this process as simple as possible, the IRS regulations state that by the taxpayer assigning the rights under the sale and purchase contracts to the qualified intermediary, for tax purpose that is sufficient to deem the properties to be exchanged between the taxpayer and the qualified intermediary.