I have met an older gentleman who owns and is looking to sell 20 single family homes he owns free and clear. He is worried about the taxes he is going to have to pay since he has already fully depreciated all of the homes and his purchase price is much lower than todays market values. I want to solve his problem, is there any options available, like him selling at a lower price and offer seller finacing at a higer intereat rate, etc.... anything to help solve his concerns and make this a win win.
Investor · Cherry Hill, NJ · Member since 2016 · 860 posts · 324 votes
5y
@Kevin Bartlett
He can 1031 the proceeds or can do seller financing/installments payments to reduce the tax burden. If this is his concern he should be seeking out tax strategy advice
Rental Property Investor · Jersey City, NJ · Member since 2019 · 72 posts · 26 votes
5y
He personally should be consulting a CPA who specializes in Real estate for this. No one but the CPA has the capability to tell him what route he should take to save on taxes.
Thank you for the recommendations. I agree it's up to him to seek CPA advice; sometimes sellers don't think of alternatives outside of traditional options unless presented with them. I was curious about any creative options others have used as I am hoping to put something in front of him that separates me and creates the win/win. Thanks again for the advice.