Leo changed an apartment building for a commercial warehouse.

Leo Gave:

Apt bUilding FMV 20,000,000

Leo bought it 5 years ago for 2,000,000 and there was 1,000,000 Accumulated depreciation

Mortgage on building (assumed by buyer) 10,000,000

Furniture and fixtures FMV 10,000 (adjusted basis 10,000)

Cash 1,000,000

What Leo got:

Commercial warehouse FMV 22,000,000 (Buyer had bought for 50,000,000 and there was 1,000,000 Accumulated depreciation

Mortgage (ASSUMED BY LEO) 5,000,000

A car FMV 100,000 (buyer bought it for 100,000)

cash 200,000

compute all tax consequences