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Boot means:
unlike property included to balance the values of like properties exchanged.

Example of Boot:

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In an exchange of property under Section 1031 of the Internal Revenue Code, Collins exchanges her warehouse, worth $100,000, for Baker's land, worth $125,000. Collins adds $15,000 cash and a car worth $10,000 in order to equalize the values of the properties exchanged. The car and cash are boot.

Description and Definition of Boot

The receipt of cash or its equivalent accompanying an exchange of property making the values of the property traded equal. In a tax-free exchange boot is subject to immediate tax.


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