Tax strategies to avoid/mitigate capital gains

[Ted Swagerty]

Hey folks!

An older friend of mine would like to liquidate his four properties but he would like to avoid paying capital gains tax.

I suggested that he and I form a LLC and slowly transfer his properties to our LLC.

Are there any other strategies that I am not aware of?

[Ashish Acharya]

Originally posted by @Ted Swagerty:

Hey folks!

An older friend of mine would like to liquidate his four properties but he would like to avoid paying capital gains tax.

I suggested that he and I form a LLC and slowly transfer his properties to our LLC.

Are there any other strategies that I am not aware of?

Hey, how does transferring the properties to LLC achieves his goal of liquidation? he still owns the interest in the partnership. This is not a liquidation or a taxable event.

How old is you friend? Does he have kids? He might be paying a tax on the gain when he can just pass it on without tax implications. 

Yes, there are ways to defer the gain if he wants to liquidate.