ted and marvin brown purchased an apartment building in 2003 as equal tenants in common a/

The realized gain on the sale of the apartment building for each brother was $350,000. Ted recognized gain on his share and used the net proceeds to invest in stock. Marvin wanted to defer any recognized gain, so he worked with a realtor to identify property that would be eligible for § 1031 like-kind exchange treatment. After one prospect failed, the realtor identified a single-family home on Lake Tahoe that was currently being rented by the owner. Marvin agreed with the choice and acquired the single-family house using the proceeds from the apartment building. Because the single-family house qualified as like-kind property, Marvin deferred all of his realized gain.