Boot Mitigation Analysis
Cash, debt, and personal property modeling to minimize taxable boot during the exchange.
Overview
Boot exposure is a common risk. We analyze closing statements, financing terms, and replacement pricing to highlight mitigation strategies before day 180.
Highlights
- Debt replacement comparison showing potential relief-driven boot.
- Cash to close projections for sale and purchase escrows.
- Personal property review covering fixtures, equipment, and goodwill.
Deliverables
- Boot exposure report with recommended adjustments or disclosures.
- CPA briefing memo summarizing data inputs and assumptions.
- Post-closing reconciliation confirming final taxable amounts.
Educational content only. Not tax or legal advice.
Consult a Qualified Intermediary and tax advisor before acting.
Frequently Asked Questions
Can all boot be eliminated?
Not always, but early modeling allows investors to reduce exposure or plan for recognized gain with their CPA.
Is boot analysis shared with lenders?
We share relevant insights with lenders and advisors when investors authorize collaboration.
Does the analysis cover state taxes?
Yes. The report references Arizona considerations alongside federal treatment.
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