According to Mr. Jones on May 31, 2018, he and his wife exchanged their twofamily house in Westchester County (675 Pinebrook Blvd, New Rochelle, NY), which they rented entirely from January 01, 2014 to May 31, 2018, for a four family rental property located at 62 Atlantic Avenue, Brooklyn, NY. At the time of the exchange, the FMV of the two-family house was $900,000, and the adjusted basis was $??????? (Calculate based on information provided below). The Four-family house had an adjusted basis of $150,000 and a FMV of $890,000. The two-family home was subject to a $10,000 mortgage, which the buyer assumed.

Rental Income Mortgage Interest Expense Real Estate Taxes Utilities Insurance Water & Sewer Place in Service Purchase Price Pinebrook Property $37,000.00 $10,000.00 $4,000.00 $3,500.00 $1,750.00 $1,300.00 01/01/2014 $475,000.00