Since the real estate is part of the transaction you can't do the 1031 exchange.You could consider an installment sale, to potentially spread the tax liability over several years.

And you now have to file three tax returns:- partnership tax return- your individual tax return reporting 1/2 of the partnership losses- your partner's individual tax return reporting their 1/2 of the partnership lossesAnd while partnership return can be DIY-ed, it probably should not be.

Maybe that is why the old owner didn't pay their taxes?

Do you have a current need for that cash flow generated from the tax savings?

Hi Nirek - I deal with a lot of clients in your similar situation.

Hi All, any input on renovating a house and possible tax exemptions under an LLC?

And she’s the one that released the latest tax rates and year to year comparisons in September of 2024.

@Anita Z.I recommend finding an accountant who specializes in real estate taxation, tax planning and financial planning.

I do not know his entire situation, this is true.

5 Tax Mitigation Strategies Every Real Estate Investor Should KnowAs a real estate investor, every dollar you save in taxes is another dollar you can reinvest into growing your portfolio.