Boot 2019-06-04 08:00:00

Boot

Boot, although not specifically defined (or even mentioned) in IRC Section 1031, is commonly used and refers to the fair market value of cash, benefit or other non “like-kind” property received by the taxpayer in an exchange of a capital asset which is subject to capital gains tax.

For example, if an investor generated $500,000 of net proceeds from the sale of their relinquished property, but only reinvested $450,000, the $50,000 of retained proceeds would be considered boot and subject to capital gains and depreciation recapture taxes.

 


The 1031 Investor's Guidebook

Download The Guide To 1031 Exchange

Tackle the art and science of completing your 1031 exchange.

By providing your email and phone number, you are opting to receive communications from Realized. If you receive a text message and choose to stop receiving further messages, reply STOP to immediately unsubscribe. Msg & Data rates may apply. To manage receiving emails from Realized visit the Manage Preferences link in any email received.