Exchange

Definition

• To give something in return for something else (such as goods or services). Making exchanges for similar or like property is a popular tax-deferral strategy.

Synonyms
shift, deal, change, barter, swap, switch, transfer, trade

Related Terms and Acronyms

• Assignee — Definition,
  • In the insurance industry, an assignee is someone who is assigned ownership of another person's insurance policy.
  • A person appointed to acquire (take) an item, such as a property.
• Assignor — Definition,
• Bilateral Contract — Definition,
  • A legal agreement in which both parties promise to give each other something. A purchase agreement in which the buyer promises to give money and the seller promises to transfer property is a bilateral contract.
• Income Tax — Definition,
  • The main source of revenue for the federal government and many Provinces. The tax is based on your earned and unearned income. The amount or percentage taxed is based on the amount of income, using the governments graduated tax scale.
• Offer — Definition,
  • To propose or give something.
• Recognized Gain or Loss — Definition,
  • The amount of gain or loss reported for income tax purposes. You may be able to defer recognizing gain or loss on certain property exchanges, such as like-kind exchanges.
• Swap — Definition,
  • An agreement between two businesses to exchange commodities, payments or other financial products to reduce the risk of volatile market conditions or to obtain a better price or rate. For example, interest rate swaps, where floating rate interest is exchanged for fixed rate interest, protects a corporation against rises in rates or allows it to take advantage of a better rate. A cross-currency swap enables two parties to enter into an agreement in which one exchanges its currency for the other's to meet their separate requirements.
• Tax Deferral — Definition,
  • The postponement of taxes to a later year, usually by recognizing income or a gain at a later time. Remember, this only delays your tax liability; it doesn't eliminate it.
• Tax Deferred Annuity (TDA) — Acronym, Important,
  • A type of annuity where taxes are deferred until the annuitant decides to withdraw money from the annuity.
  ➥ More commonly known as a Tax Sheltered Annuity (TSA).
• Trade Equity — Definition,
  • A swap of property, such as real estate or a car, as part of a down payment for other real estate.
• Transfer of Title (TOT) — Acronym,
  • A document signed by the seller and purchaser transferring ownership, at which time the document is registered against the property.