Net lease glossary
Boot
Cash or other non-like-kind value received in a 1031 exchange, which is taxable to the extent of the gain.
Boot is any value an exchanger receives that is not like-kind property, such as cash left over at closing, debt relief not offset by new debt or added cash, or personal property. Boot is taxable up to the amount of realized gain, even though the rest of the exchange can still qualify for deferral. To avoid boot, investors typically buy replacement property of equal or greater value and reinvest all net exchange proceeds.