Selling Rental Home, How Do I Avoid Taxes

[Jay Lee]

Good morning,  

Needed your help and would appreciate thoughts.

Iam selling a rental home that has been owned for over 10 years located in Phoenix, Arizona.

What are my different options to avoid /defer taxes?  

I have done 1031 exchange before but was looking for other options to see if I could defer or avoid taxes legally but not have to buy and manage another rental property.

Thank you for your time.  Would appreciate thoughts and input! 

[Dave Foster]

@Jay Lee, yea your best bet if you want to defer the tax is a 1031. @Bill B.provided some good options, but as @Mason Weiss said, there are passive opportunities that qualify for 1031 treatment and eliminate your responsibility to have to manage them.

NNN leases are a good option that will leave most of the responsibility to the tenant, but there are syndications that you can 1031 into, like DSTs (Delaware statutory trust).

These are completely passive and will allow you to defer all of the tax in an exchange. Once the project is complete, you could either 1031 into another DST or back into brick and mortar if you wanted, and continue your tax-deferred journey.