Mason owns 60% of the MW Partnership. Wendy owns 40%. Mason sells to the partnership certain equipment that he owns in his own individual name. The equipment is a capital asset to Mason, and has a tax basis of $700 and a fair market value of $400. He sells it to the partnership for $400. The partnership will use the equipment in its business (i.e., as a Section 1231 asset).

What are the tax consequences to Mason on the sale of the equipment to the partnership?