Question: Dan in Florida wants to trade Liz in New York:
Dan's rental property is worth $350,000.
Dan's adjusted basis is $200,000.
Liz's rental property is worth $650,000 and has a $250,000 mortgage that will be assumed by Dan.
Dan will also give Liz $50,000 in cash at closing.
Liz's adjusted basis is $400,000.
What is Dan's recognized gain? What is Liz's?
What is Dan's realized gain? What is Liz's?
What is Dan's substituted basis in the New York home?