Tax Implications For Trade

What is the name of your state? Texas
What are the federal and/or tax implications for a trade. More specifically, I traded real estate valued at $85K for an aircraft valued @ $85k.

You report the real estate sale on schedule D and list $85,000 as the proceeds. Your basis in the airplane is $85,000.

Would this mean that the trade would be a wash and no capital gains would be paid if the two pieces of property are same value?

Would I be liable for Cap Gains if I paid $50K for the property and I am now trading for something worth $85K?

Thanks

In that scenario, you'd pay capital gains on $35,000. The only way to postpone the capital gains is if you used the property in business & trade the property for something else that is substantially the same & use it in business.

For example, if you sell a rental house & buy a new one within a certain time period, you can defer the gains on the house you sold. This is called a 1031 exchange. They are very technical & you should definitely hire an attorney or enrolled agent to help you structure the deal.