According to Sec.1001 the amount realized is 在交换当中所收到的the value of all property. The basis is 交换的property 的cost. The adjusted basis is 在cost的基础上做一些调整 例如 减去折旧，加上improvement的费用。

The amount realized（假设我们是卖家） = cash received
加上：FMV（fair marker value） of other property received
+ Liabilities assumed by the buyer (ex., notes receivable given to the seller)（因为交换导致的买家欠我们的钱)
+ Liabilities or encumbrances on property transferred to the buyer (ex., mortgages transferred from seller to buyer)
减去：Selling expenses（交换时产生的一些费用）
-Cash paid to the buyer
-Liabilities assumed by the seller (ex., a note payable from the seller to the buyer) 由于交换，我们欠买家的钱
-Liabilities encumbering the property received that are assumed by the seller.(我们承担的买家交换的property所带的负债)

Adjusted basis (买这个property所支付的所有开销)= cash paid
加上： Unpaid mortgage of property
+Debt (notes payable) given to seller
+Taxes relating to acquisition
+Interest and taxes on construction
+betterments & improvements 的花费
+Other acquisition costs (legal, appraisals, etc.)
减去：Depreciation
-Liquidating distributions by corporations
-Casualties and certain other losses
-Amortized bond premiums

Amount Realized-Adjusted Basis=        Gain or Loss Realized

Realization: economic  Recognition：taxable

Realized gain are not always recognized 分3类: 1. 一般情况下Immediately recognition 2. Deferred （推迟再recognize) 3. 不recognition（not taxable）