A gain on a like-kind exchange is always recognized to the extent of any boot received.

Question

Quizplus · Accepted Answer

A gain on a like-kind exchange may be deferred or recognized depending on the presence or absence of boot (non-like-kind property received). If no boot is received, and the exchange meets all other requirements of Section 1031, the gain can be deferred. However, if boot is received, the gain recognized is limited to the lesser of the realized gain or the boot received.

A Gain on a Like-Kind Exchange Is Always Recognized to the Extent