Pat Leif owned an apartment house that he bought in 2000.
Depreciation was taken on a straight-line basis. In 2013, when
Pat’s adjusted basis for this property was $200,000, he traded it
for an office building having a fair market value of $600,000. The
apartment house has 100 dwelling units, while the office building
has 40 units rented to business enterprises. The properties are
not located in the same city. What is Pat’s reportable gain on this