Mark exchanged an office building that he owned for over ten years for vacant land used by Sandy in her farming business. The office building had a FMV of $3,150,000, which Mark purchased in 2010 for $1,725,000. Mark deducted $325,000 of depreciation, but because of an error, the amount of depreciation he should have taken was $480,000. Also, Mark received a $350,000 insurance reimbursement for damage to the office building, which he used to acquired equipment for his business. The office building had a $700,000 mortgage liability, which Sandy agreed to assume. The land had a FMV of $2,000,000 and cost Sandy of $1,825,000 excluding the cost improving the land with a parking lot, which cost Sandy an additional $110,000. Sandy took $40,000 of depreciation deductions on the parking lot. Additionally, Sandy also gave Mark cash of $100,000 and equipment valued at $350,000 with an adjusted basis of $300,000. 

Calculate Mark's basis in the vacant land after the transaction. How much gain or loss did Mark defer? Explain your answer including ALL components in the calculation of you answer. What rule did you rely on in determining your answer? Show all calculations

Determine Sandy's recognize gain or loss. Also, what is her basis in the building after the transaction? Explain your answer and show all calculation.

The Joe and Cindy Jones have been married since 2010. On March 01, 2015, the Jones' purchased their first home for $438,000. On April 01, 2017, the home sustained substantial damage caused by fire. The insurance company reimbursed them $218,000 for the fire damage, of which, they used $115,000 to restore and repair the damages caused by the fire. The remaining portion of the insurance proceeds was invested in the stock market. On May 28, 2018, the Jones' sold there home for $954,000, and purchased a new home for $650,000 on July 01, 2018. As a result of Cindy's employer relocated to Florida, the Jones sold the new home on December 31, 2019, for $1,265,000.

 What is their recognized gain in 2018 and 2019 from the sale of the old home and new old assuming they used whatever strategy available to them to minimize their tax liability? Explain your answer and show all calculations.