Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is Boot?

April 26, 2017boot

0

Posted

What is Boot?

2 Answers

0

Posted

Boot is any property received by the taxpayer in the exchange which is not like-kind to the relinquished property. Boot is characterized as either “cash” boot or “mortgage” boot. Realized Gain is recognized to the extent of net boot received.

0

Posted

Boot is defined as any non-like kind property received by the Exchanger in the exchange and is taxable. Receiving cash or other boot in an exchange does not terminate the exchange. If, in addition to the replacement property, the Exchanger receives money or some other kind of boot, the Exchanger may have taxable gain. The good news is that the Exchanger is only taxed on gain that comes from the money and other boot received.