Solomon C, Lao, CCIM. Your Partner In Commercial Real Estate.
Boot...Having nothing at all to do with footwear, "Boot" is an English term, which refers to that which is necessary to even out an exchange. Boot is property, which is not "like kind" as to other property acquired in an exchange transaction.
Boot Receipt = Gain Recognition
An Exchanger who receives boot in an exchange transaction generally recognizes gain to the extent of the value of boot received. Some common examples of boot are:
Examples of non "like-kind" property:
Cold bullion in not "like-kind" to silver bullion (Rev. Rul. 82-166, 1982-2 CB 190)
Male livestock is not "like-kind" to female livestock (IRC 1031 (e))
* An Exchanger can utilize IRC 453 to recognize the gain (boot) of a seller carry-back note received in an exchange transaction under the installment sale rules.
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