Boot, in a real estate context, refers to any non-like-kind property that is included in a property exchange to balance the value. It can comprise cash, personal property, or other liabilities.
Deferred gain refers to the amount of gain that is realized but not recognized at the time of a transaction, commonly occurring in tax-deferred exchanges, often known as 1031 exchanges. Essentially, deferred gain allows taxpayers to defer paying taxes on capital gains by reinvesting the proceeds in like-kind properties.
A Delayed (Tax-Free) Exchange refers to a transaction where an investment property is traded for another like-kind property, allowing for the deferment of capital gains taxes as stipulated by IRS guidelines.
A Starker Transaction, also known as a delayed tax-free exchange, is a method used in real estate to defer the payment of capital gains tax on the sale of an investment property by using the proceeds to purchase a like-kind property.
A Tax-Deferred Exchange, often referred to as a 1031 exchange, allows investors to defer paying capital gains taxes on real estate investments when one property is sold and a similar one is purchased within specified time frames.
