Bob owns a duplex used as
rental property. The duplex has a basis of $86,000 and a fair
market value of $300,000. Bob transfers the duplex to his brother,
Carl, in exchange for a triplex that Carl owns. The triplex has a
basis of $279,000 and a fair market value of $300,000. Two months
after the exchange, but in the same taxable year as the exchange
with his brother, Carl sells the duplex to his business associate
for $312,000.
a....