---
title: Boot
description: Boot refers to the fair market value of non “like-kind” property received in an exchange of a capital asset which is subject to capital gains tax.
---

[Realized 1031 Glossary of Terms ](https://www.realized1031.com/glossary)

# [Boot](https://www.realized1031.com/glossary/boot)

 Written by [The Realized Team](https://www.realized1031.com/glossary/author/the-realized-team) | Jun 20, 2022 5:00:00 AM

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](https://www.realized1031.com/glossary/like-kind-property) received by the taxpayer in an exchange of a capital asset which is subject to [capital gains tax](https://www.realized1031.com/glossary/capital-gain-tax).

For example, if an investor generated $500,000 of net proceeds from the sale of their [relinquished property](https://www.realized1031.com/glossary/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.

[View full post](https://www.realized1031.com/glossary/boot)

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