I have a piece of land that I purchased about 10 years ago. I entered an agreement with a real estate developer in 2014 for construction of apartments. The agreement was to give me 3 apartments in lieu of the land and keep the remaining 7 for him. The apartments will be handed over to me soon. When will the tax liability arise for payment of capital gains tax? Would it be when I get the apartments or when I sell them? Thanks,
You'll have to see a tax professional with all the facts including the actual agreement. Without all the facts, I'd say you sold the land at the moment of the agreement for the value of the three apartments. (Perhaps more.) But, a partnership could have been created with your contribution of the land to it. Your basis in the apartments (I assume you mean condos where you have ownership rights or some other ownership rights association.) when you sell them depends on the previous determination.
Let's face it, you created a complex scenario that cannot be described in a line or two. Taxation is a complex area for both sides of the equation. Here is a link to some issues on only one side:
https://www.grantthornton.com/staticfiles/GTCom/files/Industries/ConstructionRealEstateAndHospitality/article_v3.pdf