Sam owns an apartment building with a fair market value of $1,000,000 which has a first deed of trust for $200,000 against it. Kaitlyn owns a commercial building with a fair market value of $1,200,000 which has a first deed of trust for $500,000 against it.

Describe the terms of an appropriate exchange of properties between Sam and Kaitlyn and how it would be achieved. And if successful, what would be the impact on Sam's obligation to pay capital gains tax on the sale of his apartment building?