What funds does an investor or owner retain after selling a property?

In the context of real estate transactions, particularly when discussing a sale of property, the term "boot" refers to funds or assets that are received in a transaction that are not considered like-kind property in a 1031 exchange. When an investor sells property and then acquires another property, if they receive cash or other non-like-kind property as part of the transaction, that portion is termed "boot." This could include any cash received over and above the value of the new property being purchased.

Understanding this term is crucial for investors making decisions about how to structure transactions to defer capital gains taxes. By selling a property and receiving "boot," they recognize this amount as taxable income, whereas they can defer taxes on the gains if they reinvest the entire proceeds into another qualifying property.

In contrast, other terms in the question refer to different aspects of property ownership and investment. For instance, reinvested funds relate to additional money put into investment projects, capital gains pertain to the profit made from the sale of an asset, and equity refers to the ownership stake in a property calculated as the property's value minus any debts. None of these options provide the specific context of receiving funds as "boot" in a selling transaction.