If I sell raw land, can I reinvest the proceeds in other raw land to defer any taxes due on the original sale?

If I sell raw land, can I reinvest the proceeds in other raw land to defer any taxes due on the original sale?

No. Once you complete a sale, you must report it and any gain will be taxable. If you receive one or more payments from the sale after the year you close, you can use installment reporting to spread out your gain over the years in which you receive payment.

Before selling, consider making a like-kind exchange. If you transfer investment property with other investment property that's considered like kind, such as one piece of real estate for another, and don't receive any cash or other property on the transaction, all of the gain is tax free now. The gain is deferred until you dispose of the replacement property in a taxable transaction. If the trade isn't simultaneous, be sure to note important time limits:

• Potential properties to be received on the exchange must be identified within 45 days of transferring the property.
• The exchange must be completed within 180 days of transferring the property.