Taxpayer (TP) acquired investment real estate in 2002 for $300,000, and seeks to now sell it for $1,500,000, although he has not found a buyer. Instead, he has located replacement property that he wants to purchase. That seller of that replacement property has accepted TP’s offer of $1,400,000. This property will not be available for too much longer, therefore TP seeks your advice as to how to effect a section 1031 transaction involving both parcels if he purchases this replacement (target) property before selling his “relinquished” property. Please advise him as to the mechanics of a 1031 transaction in this scenario. Assuming section 1031 applies, what would be the realized and recognized gain (if any) associated with the eventual sale of the relinquished property for the asking price of $1,500,000 as well as the basis of the target property.