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 periodicals archive ?
They don't have to clean boots any more, they get a very easy life.
He would always be a reserve and always came home with spotlessly clean boots.
I can remember as a young player having to clean boots, carry the goals and do all the rotten jobs.
ANOTHER old Radford kid who wrote in to me recalls: "When my father was young in the 1890s he was employed to clean boots and do other odd jobs before school and often talked of the kindness he had received in the kitchen of Radford House.
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.