Owen and Lisa Cordoncillo exchanged land held for investment in May 2019 Owen and Lisa are brother and sister Lisa gave Texas land with an adjusted basis of $2,000 and a fair market value of $6,000 in exchange for Arkansas land from Owen Owens Arkansas land at the time of the exchange had a fair market value of $5,500 and an adjusted basis of $2,500 In addition, Owen gave Lisa $500 cash The following March, Owen sold the Texas land to a third party for $5,800