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Cash boot
Also called: cash received · cash out
Cash or other money received as part of an exchange that may produce recognized gain.
What it means in practice.
If a taxpayer receives cash in addition to like-kind replacement property, current gain recognition may result to the extent required under the Section 1031 rules.
Why it matters.
A fully tax-deferred result cannot be inferred simply from buying another property; the entire exchange economics matter.
Additional notes.
If a taxpayer receives cash in addition to like-kind replacement property, current gain recognition may result to the extent required under the Section 1031 rules.
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