Last year I sold mutual funds. Do I pay tax on capital gain on the form 1099-B if I use fund to buy investment property?

Yes, the sale of the mutual fund ends that transaction, and you will report it on your taxes.  The purchase of the investment property starts a brand-new transaction.

To record your mutual funds that are listed on your 1099-B:

1. Start at Federal
2. Wages and Income
3. Scroll to Investments & Savings
4. Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B) [Start or Revisit]
5. Did you have investment income in 2022? - Yes
6.  Get ready to be impressed  Continue
7. You can enter your information to import the details
8. —----------- OR —------------------------
9. Select Enter a different way.
10. Choose the Box Stocks, Bonds, Mutual Funds Continue
11. Follow the interview to post your information.

If your investment property is a rental, you should prepare a Schedule E.

If this does not completely answer your question, please contact us again and provide some additional details.