Depreciation is standing the way

[Young Moon]

I am in the process of negotiating a deal for a 28 unit apartment complex.  Seller has just talked to his accountant and said his tax hit would be too large if he sold to me because he has taken 10 years of depreciation on the property.  He is aware of a 1031, but there is no property that is available that he wants to trade up to.  I also floated the idea of seller financing to help defer some of the tax burden.  Has anyone encountered this issue before and does anyone else have creative ways to solve the tax issue, so I can land this deal?

Thanks all!

[Priyanshu Adathakkar]

Talk to a large developer and park the money as a 1031 purchase in one of his/her lands that they are holding for future development. This can be liquidated when your seller finds a suitable property to buy.