[nk522]

I’m not sure if my brain is just fried out at this point, but I can’t seem to grasp my head around what Tim Gearty means when he refers to “boot” or “loot.” Is it another word for a gain? I focus more on the amount of times he says that word rather than what it means. Someone please help!!!!

[Namstut]

@nk522 boot is simply cash or other property (loan assumed) added during property exchange in order to increase the value of the replacement property. I think he is just rhyming it to make us remember it.

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[Trele6]

I wouldn't call boot or loot a gain per se. To me it is a “bonus” item thrown into the deal to facilitate an exchange.

Gain/Loss is calculated on the total transaction and the boot or loot can dramatically change the calculation.

First go at the CPA! Only using Becker
Reg / Nov 2015 - 87
Far / Apr 2016 - 79
Bec / May 2016 - 80
Aud / Aug 2016

[aaronmo]

For me this was just memorizing the rules that applied to boot…not much concept here. Receiving boot requires using some methods/rules to determine gain. They aren't the same thing…the boot may RESULT in a gain. Remember that SIMILAR concepts to boot also can affect basis in partnerships and S-corps (the similar concept here being the benefit from moving a liability to the entity).

So if you get cash, you use the applicable method to calculate basis and gain. I always found it easiest to relate this to journal entries; it helped keep track of the moving parts and to focus on the balance.

[Author]

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