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Investopedia explains 'Amount Recognized'
In some types of like-kind exchanges of property, capital gains that are realized are often not recognized until a later tax year. Usually these gains are deferred until the property that they were exchanged for is finally sold.
For example, say a taxpayer buys a tract of land as an investment for $20,000, then exchanges it for another similar type of investment ten years later in a qualified 1031 exchange. In a Section 1031 exchange, the amount recognized for tax purposes will not be included in the personal tax return until there are no more Section 1031 exchanges related to the land investment.
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