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Account Closed
  • Real Estate Agent
  • San Jose, CA
4
Votes |
31
Posts

Seller doesn't want to pay capital gains taxes

Account Closed
  • Real Estate Agent
  • San Jose, CA
Posted Jan 12 2021, 13:49

Hello. I often come across owners of high value single family rental property who's sole reason for not wanting to sell is "All of my money would go to the government". In the past I've referred an owner to a cpa near him (he lived out of state) and after speaking with the cpa he realized he wouldnt have to pay nearly as much capital gains tax as he thought. This however is an involved process and I can't always get owners to talk to a cpa and not knowing much about taxes myself I can't be sure they're wrong about how much they think they would pay. I also have suggested they try a 1031 exchange but many sellers don't want the headache of that.

Because this is such a common objection I get from sellers could anyone please share which ways if any they would handle this? Again these are sellers who's sole reason for not selling seems to be wanting to avoid paying taxes.

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