Boot refers to the item, including money, service, or a fee in return for another item of equal value, whose value is determined by parties in the trade. The purpose of this is to make a transaction equal or fair. Under the tax code, cash boot can be used in real property transfers.
Property can be exchanged between property owners. This process is commonly used amongst businesses that exchange assets in return for other property, including intentional rights such technology, information, and others. Because different real estate properties have different equity, the party that gains additional value may be subject to taxation. This is called boot. Boot is the term used to describe the taxable income that is placed on the transferee that retains the new equity.