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Real Estate Glossary

1031 Exchange – Boot

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Richard Wilson
Written by Richard Wilson

Boot refers to non-like-kind property or items acquired through an exchange. It can be created in various ways, such as receiving debt relief, cash, or incorporating personal property in your tax-deferred exchange. Any individual who would like their 1031 exchange to be free of taxes need to avoid boot. However, if they need money and don’t mind getting taxed, they can choose to receive boot.

Boot refers to non-like-kind property or items acquired through an exchange. It can be created in various ways, such as receiving debt relief, cash, or incorporating personal property in your tax-deferred exchange. Any individual who would like their 1031 exchange to be free of taxes need to avoid boot. However, if they need money and don’t mind getting taxed, they can choose to receive boot.

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Richard Wilson

Richard Wilson

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