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 ?
There were white-tusked wild males, with fallen leaves and nuts and twigs lying in the wrinkles of their necks and the folds of their ears; fat, slow-footed she-elephants, with restless, little pinky black calves only three or four feet high running under their stomachs; young elephants with their tusks just beginning to show, and very proud of them; lanky, scraggy old-maid elephants, with their hollow anxious faces, and trunks like rough bark; savage old bull elephants, scarred from shoulder to flank with great weals and cuts of bygone fights, and the caked dirt of their solitary mud baths dropping from their shoulders; and there was one with a broken tusk and the marks of the full-stroke, the terrible drawing scrape, of a tiger's claws on his side.
And at that last wild yell the whole line flung up their trunks till the tips touched their foreheads, and broke out into the full salute--the crashing trumpet-peal that only the Viceroy of India hears, the Salaamut of the Keddah.
The warrior screamed, and as he screamed, the sinuous trunk encircled him, lifted him high above the ground, and hurled him far after the fleeing crowd.
All this passed in a moment, while trunks were being hustled off, hackman paid, and while a crowd, of all ages and sizes,--men, women, and children,--came running through the galleries, both above and below to see Mas'r come in.
On June 18, 1909, the body of Sigel was found with a rope around her neck in a trunk in Leon Ling's apartment above a Chinese restaurant in New York City.
The trunk has been passed down from generation to generation and its beauty is ageless, untouched by time or change.
Actually, it has trouble in the storage department as well, with a tiny clamshell trunk that's big enough to hold a couple of gym bags and not much else--especially with the top down and tucked into that space.
The animal apparently threw the man as a reaction to the man's failed attempt to climb upon its trunk.
Coeliac trunk initially originates from the dorsal aorta at the seventh cervical level and drifts caudally to the twelfth thoracic level due to the descent of viscera supplied in the abdomen.
M2 EQUITYBITES-January 23, 2017-Nordstrom announces extension of loyalty programme to customers at Trunk Club