Tax Drill - Giving of Boot Mandy and Timothy exchange land in a like-kind exchange. Mandy receives land with a fair market value of $28,000 and transfers land worth $20,000 (adjusted basis of $14,000) and cash of $8,000. If an amount is zero, enter "0". Mandy's realized gain is s Feedback 6,000 and her recognized gain is s 22,000 X Check My Work Section 1031 requires nontaxable exchange treatment if the following requirements are satisfied: The property is like-kind property. The form of the transaction is an exchange. Both the property given up and the property received are either "used in a trade or business" or "held for investment."