Under a 2009 separation agreement and divorce decree, Helen transfers a building (which is her separate property) to her ex-husband, Ken, in exchange for his release of any rights he has in other property that Helen acquired during the marriage. The transfer is made on the day of the divorce. Helen had bought the building in 1986 for $1,000,000. In 2007, she made $200,000 worth of capital improvements in the building. Its fair market value on the date she transfers it to Ken is $1,500,000. A week later, however, the market crashes, and Ken is forced to sell the building for $800,000. What are the tax consequences of these transactions