Purchased house for $104000 + $16000 improvements = $105,600 basis.
Sold in Sept 2022 for $408000 (net) - $105,600 = $302,400 capital gain.
$302,400 capital gain - depreciation recapture (taxed as ordinary income) $82000 = $220,400 tax at capital gain rate.
The new 1031 property receives the basis from the previous property not a new basis from deferred gain. The 1031 suspends any gain to the sale of the new property.
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