I saw on another thread about selling land where you have a residence. But what if it is just land. What taxes are taken. Can you exempt if you roll into another investment?

It's not exempt unless you do a 1031 exchange. Google that.

Good info. Do you think exchanging hunting land for a rental home would qualify. I'm thinking no. But it is worth looking into since you would probably want to invest right away anyway and not just sit on a profit.

Doesn’t matter type of real estate. You could buy a beach condo from sold timber land if’n you wanted. Most other 1031 exchanges (tractors, jets etc) were done away with during the new tax law changes. Real estate is still valid.

You pay capital gains on profit from a real estate transaction. It’s only on the profit, not the whole amount. 20ish %.

To 1031 exchange, there are several hoops to jump through with timing of the sale and purchase, as well as the purchase amount in relation to the sale. A good cpa is definitely worth talking to regardless, tax laws are changing, and I’m only half azz informed anyways.

Here are your current long term capital gains rates (real estate held longer than one year). As you can tell, they are based on your income. As for 1031, what Atoler said is good advice.

Tax rate Single Joint Head of household
0% $0 to $38,600 $0-$77,200 $0-$51,700
15% $38,601-$425,800 $77,201-$479,000 $51,701-$452,400
20% $425,801 and up $479,001 and up $452,401 and up

I just did a 1031. It had to be a "Like Property".

Also, you get 45 days from the sale to buy "identify and buy" another one.

You cannot get your money at the close of the initial property you sell. The Proceeds have to go in a THIRD PARTY's escrow account. ( Not the closing attorney but another lawyers escrow account.)

When you purchase the new property the third party wires the money to the closing attorney doing the purchase closing.

It is pretty simple and keeps you from not only paying taxes on the profits you made, but also on any DEPRECIATION your accountant wrote of over the years you owned the initial property.

"Like Property" can still be timber land and condo, IF it is investment property.

It's actually more than 45 days to "buy" the property, but "identifying" the properties (up to 3) to be bought, is 45 days.

You may have your own bank set up the escrow account.

Different states have different 1031 laws. I'm referring to Alabama

God Bless,
David B.

Thanks guys.