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Income Tax Planning
Chapter 13: Nontaxable Exchanges/BOOT
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 13: Nontaxable Exchanges

BOOT

01.Core Concepts

• Cash or other non-like-kind property (at FMV) received in a like-kind exchange • Including debt relief • Tax Consequences • Gain is recognized to the extent of the boot received. • Loss is NOT recognized on exchanges involving boot – instead, a basis reduction occurs. • The transferee of property classified as boot may recognize gain or reduce basis as a result of a realized loss.