Exit Strategies that Defer Capital Gains Taxes

Which method is right for your circumstances?

Duplex, triplex, small multi-unit, individual townhome & condo rental property owners sell for many reasons. Sometimes an owner wants to leverage equity into a property with more upside potential or a better return on their investment capital.  Perhaps an opportunity has become available to leverage equity into multiple investment properties.

An owner may have determined that being a landlord has become overly burdensome. Perhaps an owner inherited a property but feels that transferring the equity into another type of investment better suits their lifestyle. Whatever the situation, there are times when selling a multi-unit rental property makes sense.

If you have built up a large amount of equity over the last several years through appreciation, you may have decided that now might be a good time to lock in profits while it’s still a seller’s market.

The problem with selling properties is the dreaded capital gains tax. Learn about exit strategies that can reduce or defer your capital gains tax - especially if you are looking to exit the landlord business altogether.

These methods include: the traditional Installment Sale, the Monetized Installment Sale, the Deferred Sales Trust and the Delaware Statutory Trust.

If you have questions about any of these tax deferral methods or would like a Broker’s Opinion on the Current Value of your Rental Property, contact Andrew at (720) 710-1000 or just complete the form below for a fast response.