Search

What is Boot, Cash Boot and Mortgage Boot?

What is Boot, Cash Boot and Mortgage Boot?

Boot is constructive receipt of non-like kind property. It is taxable to the extent there is a capital gain. Cash boot is cash constructively received. Mortgage boot is when the replacement property has less debt than the relinquished property and additional cash has not replaced the debt deficiency. The Exchanger pays taxes on cash and mortgage boot

1031 Exchange