I have studied the market there for a bit now and am comfortable with investing with decent Cash Flow and modest property price gains.

I believe you were right he would inherit your cost basis, so he would owe capital gains.

From this CT information, it looks like it is an offset against your capital gains from other property, so you would have to find investors with significant capital gains and/or have them yourself. 

Hi Sergio, I think there are way too many variables to be able to gain any real insight from responses here.

This approach can lead to both short-term gains and long-term success.If you’d like to discuss this strategy more, feel free to reach out—I’d be happy to share some insights.

But as I mentioned, IMO you dont loose a whole lot by having it and stand a chance to gain for little extra cost.

Selling an investment property can result in significant capital gains taxes.

Option C (selling) simplifies finances and provides a large lump sum (~$270K), but triggers significant capital gains taxes, potentially increasing Social Security taxation and Medicare premiums.

Simultaneously, if this vacancy is a high percentage of the buildings total SF, I would market the property for sale to an owner-user who may be able to fill the vacancy at preferred rates while gaining investment income off the other tenants.

Hi Saju,Well it is an exciting market with lots of future developments happening, all aligned with the popular Dubai 2040 vision.As for how the market is for US investors, there is no local tax on capital gains, or tax on rental income.