grandmabee Posted January 10, 2023 Report Posted January 10, 2023 When doing an exchange, boot was taken out and is taxable. My question is does any basis get prorated to the boot or is all boot fully taxable? Quote
jklcpa Posted January 10, 2023 Report Posted January 10, 2023 If boot is taken, then client has a partially deferred gain, and the boot is taxable up to the amount of gain. No proration of basis is involved. 1 Quote
DANRVAN Posted January 11, 2023 Report Posted January 11, 2023 21 hours ago, grandmabee said: When doing an exchange, boot was taken out and is taxable. My question is does any basis get prorated to the boot or is all boot fully taxable? Boot reduces basis, recognized gain increases basis. 2 Quote
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