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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 ?
After that, he fetched muddy water in its trunk. On its way back, he stopped at the tailor's shop and paired all the muddy water on the clothes in the shop.
A couple admitted in a Wyoming court on Thursday morning to driving more than 1400kms (900 miles) from Arizona to Wyoming with two children in the trunk, while dogs sat in the car's back seat.
Recently planted trees and ones with thin bark are prone to sunscald which typically occurs on the south or southwest side of trunks. This is caused by the heating of the trunk by the sun during cold temperatures.
AACA Museum Trunk or Treat (
Police officers were constitutionally justified in searching a car's trunk for illegal drugs despite only finding them in a passenger's possession during a traffic stop in Germantown and after a fruitless search of the vehicle's interior, a divided Maryland high court ruled Friday.
In recent years, Henle's trunk has attracted more and more attention because of its special anatomical position and the role as an anatomical landmark in GI surgeries, and more and more studies were done on it.
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