Glossary
Boot
Definition
Boot is cash or non-like-kind property received in a 1031 exchange. It is taxable up to the amount of realized gain. Taking on less debt on the replacement property can also create boot.
How boot works
Investors sometimes take boot deliberately to access cash, accepting tax on that part.
Planning debt replacement avoids unintended mortgage boot.
Why it matters to a firm
Boot decisions trade cash against tax, a clear advisory moment.
Calculators that use boot
Questions about boot
Is boot always taxable?
Up to the realized gain.
What is mortgage boot?
Debt relief not replaced on the new property.
Can boot be avoided?
By reinvesting all proceeds and replacing debt.
No question matches that filter. Clear it to see them all, search the whole site, or ask us directly; we reply within one business day.
Related terms: 1031 exchange
Next entry
Put the definition next to the number
Calculators on your site explain their own terms, in English or Spanish, before the client ever calls.
Firm and Network plans include a 14-day trial. Cancel before it ends and you pay nothing.