If boot is received in a § 1031 like-kind exchange, the recognized gain cannot exceed the realized gain.

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Quizplus · Accepted Answer

This is a rule of § 1031 exchanges, which states that if boot is received in the exchange (i.e. cash, property, or other non-like-kind property), the recognized gain cannot exceed the realized gain. In other words, the amount of gain that is recognized for tax purposes cannot be greater than the amount of gain that was realized in the exchange.

If Boot Is Received in a § 1031 Like-Kind Exchange