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What is dans recognized gain


  • 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.

Question 1: What is Dan's recognized gain? What is Liz's?

Question 2: What is Dan's realized gain? What is Liz's?

Question 3: What is Dan's substituted basis in the New York home?

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