Apartment owner selling with a 600k gain want to know options to reduce tax liability

[Crystal Ribail]

Apartment owner selling with a 600k gain want to know options to reduce tax liability. Background the apartment is a 26 unit and want to understand my options to reduce tax liability. I would like to get into notes potentially. Or is the only other option to be a passive investor to a larger deal? Ultimate goal is to be passive as possible. Appreciate any insight. 

[Brandon Bruckman]

Passive investor in a larger deal is the easiest way (Delaware Statuary Trust (DST) or Tenant in Common (TIC)).

You could look at Qualified Opportunity Zone Funds (QOZ).  Invest the just the gain and keep the basis to invest in notes.  Of course the original tax bill is due eventually in this structure (2026/2027).

Some important factors for you to consider are: your need for cash flow, passivity vs control, how much tax you want to defer and how important total returns are.