Definition: Boot is money or other non-like-kind value received in an otherwise qualifying like-kind exchange; certain net debt relief can also count.
Example
An investor exchanges qualifying property and receives replacement real property plus $10,000 cash; the cash is boot.
Keep the distinction clear
Receiving boot can require recognition of gain, generally limited by the gain realized. A qualifying exchange defers eligible gain rather than guaranteeing permanent tax elimination.
Related terms
Capital Gain · Adjusted Basis · Capital Asset
Keep studying
Real Estate Capital Gains: Basis, Profit, and Home-Sale Exclusions
References: IRS: like-kind exchanges · IRS Publication 544: sales and dispositions of assets
Pronunciation (US): boot (capitals show stress)
Pronunciation reference: Merriam-Webster
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