Taylor LP acquired a multifamily property for $3,500,000. The terms of the purchase was a $1,000,000 in cash and and a nonrecourse loan of $2,500,000. Taylor was unable to meet the debt service payments and defaulted on the loan. At the time of default, the mortgage balance was $3,750,000 (was refinanced). The FMV of the property was $2,650,000 and the adjusted basis was $2,300,000. Taylor will have a taxable capital gain of