Mortgage boot results when the exchangor reduces the amount of loans or debt by exchanging. Mortgage boot can result in the same potential tax consequence as cash boot with regard to capital gains owed from the sale of investment property. For example an exchangor can use all cash proceeds from the sale property toward the purchase of their next property but if the purchase price is lower therefore resulting in a lower mortgage or no mortgage being acquired the result is mortgage boot.

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Bankers Exchange Services has offices in Walnut Creek and Oakland and serves the Greater Bay Area and in particular, the East Bay region and will gladly facilitate your real estate 1031 exchange transaction anywhere in the United State or US Territories.  Bankers Exchange Services also offers specialized expertise in the following communities: