2. In 2017 Taxpayer T (" T ) purchased a house for $900,000. T paid using $500,000 cash and took a mortgage (loan) of $400,000. T used the house exclusively as a vacation home. In 2022, when the house had a fair market value ("FMV") of $1,200,000, T sold the house to S subject to the $400,000 mortgage. T received $800,000 cash and S assumed the $400,000 mortgage. How much gain/income, if any, does I recognize in 2022? 3. True or False. A taxpayer may exchange a rental home, which has appreciated in value, for a partnership interest of the same value and not recognize any income under IRC section 1031 (Like Kind Exchange)