Real Estate Agent · Salt Lake City, UT · Member since 2016 · 30 posts · 7 votes
I am trying to buy an investment property from a lady who owns it free and clear. I am trying to draw up a proposal that would allow her to sell the property to me without having to get slammed with taxes all at once.
Is there a way to wrap a 1031 exchange and an installment sale all in one?
Michael: I wish I had seen this before now! I stumbled upon a strategy that would work for your situation -- a more simplified version of a monetized installment sale. Do you still have a need for this?
I have a greatly appreciated property that I would like to sell as an installment sale. Since I know the buyer, potentially I can lower the sales price and get some of the cash in a gentlemen's agreement on the side. I have a lot of deferred appreciation ($80,000) that will be taxed as ordinary income. I am getting close to retirement so the installment sale is attractive. Anything that folks can share on the nuances of a deal like this would be appreciated.