On September $4,2023,$ Michonne and Rick engaged in a like$-$kind exchange.

Michonne exchanged an Atlanta office building she has held for investment

since $2020.$ Michonne's adjusted basis in the Atlanta building is $$80,000,$

which included $$12,000$ in depreciation Michonne took on the Atlanta

building. The Atlanta building also has a mortgage of $$70,000$ that Rick

assumes. The Atlanta building has a FMV of $$100,000.$

Rick exchanges a Virginia motel he held for investment since February $2023.$

Rick's adjusted basis in the motel is $$60,000.$ Rick's motel has a mortgage of

$$70,000$ that Michonne assumes. The Virginia motel has a FMV of $$100,000$

From the exchange, Michonne has a $

realized $($gain or

loss$)$

and recognizes $

Michonne's adjusted basis in the Virginia motel is $

Michonne's holding period in the Virginia motel is

term.

The $$12,000$ depreciation recapture on Michonne's Atlanta office building

must be

Rick has a $

realized $($gain or loss$)$

and recognizes $

from the exchange.

Rick's adjusted basis in the Atlanta office building is $

Rick's holding period in the Atlanta office building is

term.