Looking for creative, LEGAL, tax avoidance ideas

[Mindy Jensen]

I may have the opportunity to purchase a 4-plex in my desired area. When I spoke to the owner on the phone, she expressed a desire to avoid capital gains taxes.

She has owned this place since 1975, when she paid $67,000 for it. I can see it selling easily for $500,000. That is a lot of capital gains taxes to pay.

She is an older woman who owns two 4-plexes in my area, which is ultra super red-hot. I think she wants to get rid of the second 4-plex and just own the one she lives in.

I know a bit about 1031 exchanges, but I don't think this is the route she wants to go.

I am going to offer a land contract, with two payments, December 31 and January 1, to spread out the tax obligations over two years, but thought I would pose the question to the you and see if there are any other ideas. 

This transaction would take place in Colorado.

Thanks!