Taxable Boot in a 1031 Exchange

Boot is cash or other non-like-kind value you receive in a 1031 exchange. How it shows up, why it is taxable, and what equal-or-greater value and debt usually mean for full deferral.

Pages

Home
Article Detail — Tax updates and planning notes from lavicpa.
News — Tax updates and planning notes from lavicpa.
News1031 Exchange Rules2026 — The 45-day and 180-day clocks, boot, depreciation recapture, and DSTs. How a Los Angeles CPA actually walks a client through a 1031 exchange in 2026.
Property Tax Appeals — Property tax appeal help for Los Angeles County and California investors. Assessment review and filing support with lavicpa.
Real Estate Cpa LA — Real estate CPA Los Angeles for investors — entities, depreciation, 1031s, cost segregation, and property tax appeals with lavicpa.
Cpa1031 Exchange — 1031 exchange CPA Los Angeles for investors. Plan relinquished and replacement property, basis, boot, and California returns with LaviCPA. Book a consultation.
Cost Segregation — Cost segregation studies for Los Angeles investors — accelerate eligible depreciation and plan the return with lavicpa.
S Corp Election — S-Corp election planning for California business owners. Reasonable compensation, payroll, and filing with lavicpa.
Reps Passive Losses — Real estate professional status and passive loss planning for investors. Document hours and deduct rental losses with lavicpa.
News Why Cant I Deduct Rental Losses Against W2 Income — The passive activity rules keep most rental losses away from your salary. How the $25,000 allowance and Real Estate Professional Status actually work, and what the IRS looks for.
News Augusta Rule For Self Rental Strategy — IRC Section 280A(g) lets you rent your home to your own business up to 14 days a year. How Los Angeles business owners set the rent, paper the file, and stay defensible.
News Cash Balance401k Stacking High Earners — A cash balance plan on top of a 401(k) can move a large share of business income into tax-deferred retirement accounts in one year. The contribution is fixed, the W-2 base has to carry it, and depreciation can quietly undermine the math.
News California Bonus Depreciation Non Conformity Real Estate — The IRS lets you write off most of a cost-seg asset in year one. The FTB does not. What that split costs you in recordkeeping, basis, and the year you sell.
News Mastering The1031 Exchange Guide — A focused look at the two parts of a 1031 exchange that most often go wrong: the written identification rules and picking the intermediary who holds your money.
News Claim Your Irs Penalty Refunds Before The July102026 Deadline — IRS relief for certain failure-to-pay penalties on eligible 2020 and 2021 returns, and caution on the July 10, 2026 date (not a confirmed universal IRS deadline). Check your account and notices.
News Trump Accounts Children Obbba2026 — The OBBBA created a new tax-advantaged account for kids. Here is what it does, where a 529 still wins, and when it is worth setting up.
News Charitable Deduction Agi Floor Obbba2026 — The One Big Beautiful Bill Act adds a 0.5% AGI floor to itemized charitable deductions beginning in 2026. How the floor works, who it touches, and why bunching still helps.
News Alternative Minimum Tax Obbba2026 — The OBBBA made the higher individual AMT exemptions permanent. The 2026 amounts, phaseout rules, and planning points for California taxpayers.
News Estate Tax Exclusion15 Million Obbba2026 — The One Big Beautiful Bill Act sets the federal estate tax exclusion at $15 million per individual for 2026 and makes it permanent, indexed for inflation. What changed, what did not, and how to think about gifting now.
News Senior Deduction Obbba2026 Age65 — The OBBBA adds a temporary federal deduction of up to $6,000 per eligible taxpayer age 65 or older for tax years 2025-2028. Income phaseout rules, and what California filers should check.
News Standard Deduction2026 Itemize Decision — A practical 2026 comparison of the federal standard deduction and itemizing, with California considerations, senior rules, and a records checklist.
News Salt Deduction40000 Obbba California2026 — The OBBBA SALT cap is $40,000 for 2025 through 2029, but California taxpayers still face federal limits, phaseouts, and California's separate rules.
News Qbi Deduction Permanent Obbba2026 — The OBBBA made the federal Section 199A deduction permanent. What business owners should know about QBI limits, 2026 thresholds, and California's separate rules.
News100 Percent Bonus Depreciation Obbba2026 — How the federal 100% bonus depreciation rule under OBBBA can affect qualifying real estate components, cost segregation, and California reporting.
News California Ftb Estimated Tax Penalty Abatement — California estimated tax penalties are not always final. Learn the FTB safe harbors, Form 5805 process, and how to request relief when reasonable cause or a statutory exception applies.
News Irs Cp162 A Notice Response Guide S Corp — Received IRS Notice CP162A for an S corporation? Here is what the notice usually means, how to check the filing record, and when a penalty-abatement request may be appropriate.
News Energy Community Adder Census Tract Lookup — A census tract lookup can help screen a solar project's potential energy community eligibility. Here's what the DOE map shows, what it cannot decide, and what to document before claiming a credit.
News Ev Charging Station Tax Credit Deadline2026 — For eligible EV charging property, Section 30C generally turns on the placed-in-service date. Here is what the June 30, 2026 cutoff means for LA property owners, and what to document.
News After Tax Deal Underwriting Framework Real Estate — Separate operating cash flow, taxes, financing, and exit assumptions before you decide what a property can support.
News First Time Penalty Abatement Irs2026 — The IRS may remove certain penalties when your compliance history is clean. How First-Time Abate works, what it covers, and what to check before you request it.
News Partnership Taxation Real Estate Investors2026 — K-1s, basis, at-risk and passive loss limits, property contributions, debt, guaranteed payments, and California filing checks for real-estate partnerships.
News Cost Segregation Bonus Depreciation2026 — A 2026 cost segregation study may move eligible components into shorter recovery periods, where federal bonus rules can accelerate depreciation. What to document, and what California may do differently.
News Obbba High Net Worth Investors2026 — The One Big Beautiful Bill Act reshapes several 2026 planning items for higher-income filers, from QBI and bonus depreciation to SALT, the standard deduction, and the estate exclusion.
News How To Separate Co Owned Llcs Without Triggering Unwanted Taxes — A California partnership split can be tax-free, but property, debt, and hot assets can change the result. Use this checklist before you transfer an LLC interest or real estate.
News How To Claim Missed Depreciation Without Amending Tax Returns — Missed depreciation on rental real estate can often be caught up on the current return through a Section 481(a) adjustment, without amending every prior year.
News How To Protect Your1031 Exchange From Taxable Boot — Boot is cash or other non-like-kind value you receive in a 1031 exchange. How it shows up, why it is taxable, and what equal-or-greater value and debt usually mean for full deferral.
News Keep More Profit When You Sell Your Investment Property — Depreciation recapture when you sell investment property: how claimed depreciation returns in the gain, the 25% piece, and a worked basis example.
News Lower Your Tax Bill With Spousal Real Estate Professional Status — On a joint return, one spouse’s real estate hours can make rental losses non-passive. The 50% and 750-hour tests, material participation, and why the log matters.
News How To Lower Your Property Tax Assessment Step By Step — Keep more of your hard-earned money by learning how to challenge an unfair property tax assessment. This guide shows you exactly how to research and appeal your valuation.
Privacy Policy — Privacy Policy on lavicpa | Tax & bookkeeping for LA. Tax and books that stay current.
Terms — Terms on lavicpa | Tax & bookkeeping for LA. Tax and books that stay current.
Cookie Policy — Cookie Policy on lavicpa | Tax & bookkeeping for LA. Tax and books that stay current.