Selling and buying land is same year

[dslutz225]

I have asked this question prior to now but not sure I understand the answer. I sold and bought investment properties (for personal use) during the same year. Someone said based on the amts (sold one for 80k and bought another for 55k) that I probably won’t owe any taxes. I was told to fill out 1099 s for this but neither were my primary residence. I am still not sure how to report these, and I was told if you sell land and buy another piece of land with similar price range, you usually don’t owe much in taxes. If anyone can help explain this in simple terms, I would appreciate the help.

[ThomasM125]

You may be referring to a like-kind exchange of investment property. This is a situation where you sell investment real estate and turn around within sixty days and purchase similar real estate. If it is structured properly, you may be able to defer tax on a gain realized on the exchange. There are strict rules surrounding how it is done with respect to how the money transfers are handled, the type of property exchanged and the time frame involved with the exchange. Often, an intermediary must be hired to handle the transaction. You can read more about it here:  Like-Kind Exchange

If the sale and purchase qualifies for like-kind exchange treatment, you should type in Like-Kind exchanges after clicking on the help query icon in the upper right hand corner of your screen. Then use the Jump-to option to find the screen in TurboTax where you enter your exchange information.

Otherwise, you should enter your property sale in the Investment Income section of TurboTax. Choose the Stocks, cryptocurrency, Bonds, Mutual Funds, Other option. Choose Other for the type of property sold: