Client really just exchanged her 2 separate timeshares at one place to upgrade to 1 much better time share.

  They sent her 2 1099s forms showing the proceeds valued totally over 200,000  and exchanged it for one valued at around 325,000.   They told her to just wipe it out and there will be no taxes on it.

  I am trying to figure out how this works, i do understand it's long term since she has owned theses for numerous years and probably only paid like 75% of what they gave her as a upgrade.  

Please explain this to me and how to treat these 2 1099s forms.