A owns an apartment building in San Francisco worth $240,000 (basis $100,000 subject to a mortgage of $100,000). B owns an apartment building in San Jose worth $350,000 (basis $380,000, subject to a mortgage of $250,000). A and B agree to exchange properties, with B receiving A's apartment (subject to its mortgage), and A receiving $40,000 plus B's apartment (subject to the mortgage ). Discuss all tax consequences to A and B.

IRC 1031 exchange