Boot


Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Idioms, Encyclopedia, Wikipedia.
Related to Boot: Boot disk

Boot

Money or an asset added to a trade in order to make it reflect the fair market value of the assets being traded. A common example of a boot is a trade between a new car and an old car. The person trading the old car will usually add money or another asset to the deal in order to make it "even." The boot is often taxable even in an otherwise tax-free transaction.

boot

(1) Money or other property that is not like-kind and is given to make up the difference in value between two properties exchanged in a like-kind exchange under Section 1031 of the Internal Revenue Code.If a gain would otherwise be recognized on the transaction,except for the intervention of the 1031 vehicle,then gain must be recognized and taxes paid to the extent of the value of the boot. (2) Especially in Texas, it is common among property developers to require some type of boot to show that more than money is involved in their business transactions.

Example: A seller might agree to sell prime property for $12,000,000, but only if the buyer throws in a particularly handsome bronze statue sitting on his desk.

Boot

Cash or property of a type not included in the definition of qualifying property for purposes of structuring a nontaxable exchange. The receipt of boot will cause an otherwise tax-free transfer to become taxable to the extent of the lesser of the fair market value of the boot or the realized gain on the transfer. Examples of nontaxable exchanges that could be partially or completely taxable due to the receipt of boot include transfers to controlled corporations and like-kind exchanges.
References in classic literature ?
There 's one thing you must have, and that is, bronze boots," said Fan, impressively.
Tom and his father had alighted at the Peacock at about seven in the evening; and having heard with unfeigned joy the paternal order, at the bar, of steaks and oyster-sauce for supper in half an hour, and seen his father seated cozily by the bright fire in the coffee-room with the paper in his hand, Tom had run out to see about him, had wondered at all the vehicles passing and repassing, and had fraternized with the boots and hostler, from whom he ascertained that the Tally-ho was a tip-top goer--ten miles an hour including stoppages--and so punctual that all the road set their clocks by her.
He snatched the boot out of my hand, and set it in a footmark on the sand, bearing south from us as we stood, and pointing straight towards the rocky ledge called the South Spit.
I wanted a pair of boots at a certain town, for I had none to travel in, but those with the memorable cork soles, which were much too hot for the fiery decks of a steamboat.
A moment was allowed for the first thrill to subside, then Hugo, the villain, stalked in with a clanking sword at his side, a slouching hat, black beard, mysterious cloak, and the boots.
The Witch pulled him up, and there he stood again on the high road, with pockets, knapsack, cap and boots filled with gold.
In any case, therefore, I should have needed boots to maintain my name and reputation; to both of which my ragged footgear would otherwise have spelled ruin.
She took off the thick boots in which she had walked thus far, put on her pretty thin ones of patent leather, and, stuffing the former into the hedge by the gatepost where she might readily find them again, descended the hill; the freshness of colour she had derived from the keen air thinning away in spite of her as she drew near the parsonage.
If he wears his light suit and takes the stick it comes on to rain, and he reaches the house in a damp and muddy condition and spends the evening trying to hide his boots.
I was saying that your greatness puts me in mind of two persons; one very illustrious, the late cardinal, the great Cardinal de la Rochelle, who wore boots like you.
Nikita, though an habitual drunkard, was not drunk that day because since the last day before the fast, when he had drunk his coat and leather boots, he had sworn off drink and had kept his vow for two months, and was still keeping it despite the temptation of the vodka that had been drunk everywhere during the first two days of the feast.
In the early dawn John Starhurst was afoot, striding along the bush trail in his big leather boots, at his heels the faithful Narau, himself at the heels of a naked guide lent him by Mongondro to show the way to the next village, which was reached by midday.