As part of a valid section 1031 exchange, Jim Shu exchanges some of the building where his runs his gym for an apartment building which he intends to rent out to others. The gymnasium building has an adjusted basis of $242,000 (with a fair market value of $250,000). The apartment building at its fair market value of $256,000, and he also receives cash of $8,000. In this transaction, Jim Shu's recognized gain or loss is , and his basis in the apartment building would be.

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In a Section 1031 exchange also known as a likekind exchange if the property exchanged meets certain ... View the full answer