Larry Benjamin is a long$-$time client of your tax firm. He owns a rental property in Southern California that he purchased $15$ years ago for $$250,000.$ The neighborhood surrounding the rental house is going downhill; however, his real estate agent tells him he can still get $$800,000$ for it in today$$s market. His gain on sale of the rental house is about $$700,000($tax basis is $$100,000=$ cost less depreciation$)$ which will mean a very sizeable tax bill on sale. He has always enjoyed spending time in Mexico and has found a property there that he can buy and turn into a rental. The Mexico property costs $$1$ million. Larry was reading a business magazine recently and saw something about a tax$-$free exchange. He can only afford the Mexico house if he can avoid paying tax on the sale of his current rental property. He has asked you to research the availability of the tax$-$free exchange for him. Tasks:

a$.$ List as many possible tax research issues $($questions$)$ b$.$ In answering this question, use CCH AnswerConnect with only the Internal Revenue Code database selected. Summarize your findings. Be sure to properly cite the

relevant Internal Revenue Code Section and at least one Revenue Ruling $($refer to the

posted citation guide$).$