Selling investment prop and avoiding capital gains

[Thomas Wolthoff]

I sold 1/2 interest of a ski in/ski out condo (rental property) to a friend of mine who was the other 1/2 owner.  We bought the investment property in 1999.  My wife and I sold it Jan of 2016.  When utilizing turbo tax, a capital gain of $65,550 was used for calculating taxes.  Within a month after we sold the condo, we took the monies from the sale and bought investment property (vacant land) for $250K.  Does this in any way shield us from having to recognize the capital gains from the condo sale so we don't have to pay taxes on the gain?

[Christopher Phillips]

@Thomas Wolthoff

No. You would have needed to have setup a 1031 exchange. The 1031 process would need to be setup before making the sale, a property identified within a certain time period, and not taking receipt of the money from the sale of the original property -- the money has to be handled by the 1031 third party.