Windfall coming... tax plays available?

[Gunnar F.]

I am anticipating a meaningful profit on a residential rental property sale in a year or so (the sale is contingent on certain zoning changes the buyer should be able to achieve). I purchased the property in 2002.

- I will not qualify for a full or partial home profit exclusion as it has operated as a rental for the last 7 years.

- I do not wish to conduct a 1031 exchange, preferring to deploy the profits in stock market investments at this time.

Are there any other kinds of significant tax breaks that might be available? 

[Brandon Hall]

@Gunnar F. If you wish to get out of real estate, you can look at rolling the funds into various types of tax advantaged trusts, or seller financing. The latter will allow you to spread the gains over a number of years.