The Rules of “Boot” in a Section 1031 Exchange

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A Taxpayer Must Not Receive “Boot” from an exchange in order for a Section 1031 exchange to be completely tax-free. Any boot received is taxable (to the extent of gain realized on the exchange). This is okay when a seller desires some cash and is willing to pay some taxes. Otherwise, boot should be avoided in order for a 1031 Exchange to be tax free.

Published by Brett Littlewood

Brett Littlewood was born in La Jolla and has been in business for over a decade. He is surrounded by his family, friends, and network of experts across many industries and professions. Brett has been working with clients regarding real estate, wealth strategies, and marketing along the coast of California. With his extensive skills and mastery of the San Diego market, he is a knowledgeable and visionary leader. Brett prides himself in the personalized attention he gives to his clients unique needs. He can help you with your residential, investment, and commercial properties. His team specializes in the sale and acquisition of 1031 Tax Deferred Exchanges.

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