Bought land from sale of home tax free now selling land.

[Levi Kruse]

Hello I am hoping that someone can help me out here. 

I sold my primary residence last year and have been renting, I used the proceeds from the sale to buy a vacant lot and now I am changing directions and selling it, it closed today.

My question is this: will I have to pay taxes on this even though the money used to buy the land was tax free and I am selling at the same price I bought it for? If so is there any way to get around it like a 1031 exchange or something? 

This will essentially make it look like I made twice my regular yearly income and I am worried what the taxes will look like,

[Dave Foster]

@Levi Kruse, vacant land does qualify for 1031 treatment as long as you have not started construction which would make appear to be builder inventory.  

It sounds like you purchased it to hold as an investment while you evaluated and now after a year you are deciding to sell.  In that case  a 1031 would be appropriate.  You can sell that land and use the proceeds in a 1031 to purchase any other kind of investment property.