Partial 1031 - is boot taxable in the year it is received?
Doing a partial 1031 exchange in which the sale will occur this year, but the boot will not be received until next year. Is the boot taxable this year or next? If it's taxable next year, that means my capital gains wouldn't be due until 2024, however I'm not sure how it works.
[{"id": "irsqyqn", "text": "Im not sure what a 'boot' is. But usually with a 1031 you do not receive (take possession of the money), it is held by the intermediary.  So you shouldn't have to worry about tax years.", "replies": [{"id": "irssswb", "text": "Boot is the cash received if you trade down and your replacement property is less than your sold property.  That difference is taxable capital gains.", "replies": [{"id": "irt8zuh", "text": "I thought that 1031 exchanges were only possible with properties with as much or more value as the sold property?", "replies": [{"id": "irti8gc", "text": "Afaik in a partial 1031 exchange you can buy a lesser property but you will not not defer the full taxes.", "replies": [], "depth": 4}, {"id": "irtkxen", "text": "https://propertycashin.com/resources/1031-exchange-boot/", "replies": [{"id": "irtpp4l", "text": "Good to know thanks", "replies": [{"id": "irtr89t", "text": "That was the one thing I learned today....and I guess pirates talk about booty, the same thing.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "irt75bf", "text": "If you receive the boot next year the capital gains wont be due until 2024", "replies": [], "depth": 1}, {"id": "irta9pc", "text": "For the boot to be taxable in the following year I believe it needs to remain with the QI for the full 180-day period.", "replies": [{"id": "irtvpjm", "text": "Remaining funds are not released from accommodator until 181st day.", "replies": [], "depth": 2}], "depth": 1}, {"id": "irywcf1", "text": "Cash boot or debt forgiveness/decrease boot?  As both are when you receive them.  And if the forgiveness is from a sale in 2022, it is taxable then.", "replies": [], "depth": 1}]