Exit Strategies to minimize taxes?

[Cary P.]

Hey Folks,

My husband and I are planning ahead in this crazy real estate market.  Do you guys have future strategies that you are looking into to get out of real estate?  I'm not talking 1031 into some other property, but true exit strategies for estates, etc.  I know there are Delaware Statutory Trusts and Charitable Remainder Trusts, but are there other vehicles for selling your properties that we should be researching?

Thanks,
Cary

[Ana Garcia]

@Cary P. Is seller financing something you would consider? It will not eliminate your taxes, but it will definitely offer the following advantages:

- Defer your taxes paid on the gain over the life of the loan

- Keep you in the lower tax brackets if the income from the sale takes you to a higher tax bracket

It is important to know how much depreciation you have taken since you will have to pay depreciation recapture taxes for the year of sale.