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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


(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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.


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.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
I had to pick up sweaty underpants, I had to clean boots, I'd have 2p coins left under U-bends in toilets and if I didn't find them then I'd have to run round the track.
I had to clean boots and make sure training gear was spotless and on their peg every morning.
He added: "I still have a few jobs to do at the club and one of those is to clean boots for David Elebert and Dougie Imrie.
'We had it drummed into us at an early age what it took to be successful and in those days apprentices used to clean boots, mop out dressing rooms and pump up the balls as well as carry out hundreds of other tasks.
People are advised to clean boots and bicycles after their walk or ride, keep dogs on short leads and not to take dogs on to land with farm animals.
"In the first year I had to clean boots for four players - and each of them had two or three pairs.
And he also protested about having to clean boots as part of the task, before reluctantly mucking in after the other housemates, led by Sergeant Michelle, had ago at him.
Because they remember what it's like to clean boots and scrub the toilets for PS29.50 a week as youth team players at Manchester United, and they appreciate everything the game has given them.