Boot 2019-06-04 08:00:00


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.


1031 Exchange Guidebook

1031 Exchange Guidebook

The 1031 Investor's Guidebook

Capital Gain Tax Rates by State

View View the Capital Gains Tax Rates by State