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Why do I have to pay taxes on something I traded?

If you exchanged business or investment property for business or investment property of a like-kind, you don’t have to pay tax on any of the gain until you actually sell or dispose of the property you received. However, if you received something else like cash or other property in addition to the like-kind property, then you must recognize a gain on the amount of cash or other property received. Losses of like-kind exchange property are not deductible.

Credit Karma Tax can help you determine if you owe taxes on your trade and, if so, how much you’ll need to pay.

Still have questions? Contact member support

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