Boot

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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 ?
He came in gorgeous array, with plumed cap, red cloak, chestnut lovelocks, a guitar, and the boots, of course.
Well, when I catched that glimpse of that boot heel, the idea that went smashing through my head was, I know where he's hid the di'monds
It certainly occurred to the servant who had to clean his boots that they were astonishingly old boots for such a rich lord.
She, who had heard this, walked past under the screen of her woollen veil, till, presently looking back, she perceived that the church party had left the gate with her boots and retreated down the hill.
So it dresses in black coats and trousers, and black hats, and black boots, and, dear me, it is such a very respectable gentleman--to think it could ever have gone gadding about as a troubadour or a knight-errant, dressed in all those fancy colors
As you said, I have on the boots of a cavalier, but I do not intend, for all that, to embroil myself with the church this evening.
a high-pitched voice shouted, and a seven-year-old boy in a black sheepskin coat, new white felt boots, and a warm cap, ran hurriedly out of the house into the yard.
The famous boots, having filled in wading the stream, squirted fine jets of water at every step.
I kin remember when she weared worsted boots," she cried.
At home, Polly ran and rode, coasted and skated, jumped rope and raked hay, worked in her garden and rowed her boat; so no wonder she longed for something more lively than a daily promenade with a flock of giddy girls, who tilted along in high-heeled boots, and costumes which made Polly ashamed to be seen with some of them.
So spake the boots of the Peacock Inn Islington, at half-past two o'clock on the morning of a day in the early part of November 183-, giving Tom at the same time a shake by the shoulder, and then putting down a candle; and carrying off his shoes to clean.
Near the spot where we noticed the traces of the neat boots and the disappearance of the rough ones, there was a square hole, freshly made in the moist ground, where a stone had evidently been removed.