Mike and Rose Tanner recently moved from Seattle to Dallas to find a lower cost of living. They own a rental unit in Washington that they bought several years ago with an adjusted basis of $$140,000$ that is now worth $$600,000.$ They would like to continue investing in real estate but would prefer to own something closer to their new home. They would also prefer not to pay any tax on a sale of their rental home and are looking for guidance about if there is a way for them to trade their Washington rental for something similar in the Dallas area. They have not lived in the rental home at any point during the last $5$ years. They have come to you for tax advice and your task is to write them a letter explaining what the best option for them would be$.$

Prepare a client letter for Mike and explaining your recommendation to them about what they should do$.$ Keep in mind that the letter should be written in a way that somebody who has general tax and business knowledge, but is not a tax expert, can understand. Use any relevant treasury regulations, revenue rulings, court cases, etc. that would help this couple know the relevant practical details of doing a like$-$kind exchange as well as any pitfalls they might need to watch out for and to include relevant details from these tax authorities in your letter. Please also include a separate list of any legal authorities you use to draw your conclusions.