Any advice on what we can do to avoid paying the 30%+ short term capital gains tax on this land sale?

Our plan right now is to sell a condo in Seattle and use a 1031 tax deferred exchange and the equity gain as leverage to buy our first “replacement’’ property in Spokane once the renters lease is up at the Seattle property.We are looking for a specific property that we will be able to refinance after it is rehabbed and rented out so that of course we can repeat :) We are learning just what it will take to pull that off!

I haven't done research on it but I do know about the crazy tax rates in CA and the benefit of living in a state without income tax.

A five year lease benefits the tenant more than you since they will leave if they want to and you would not be able to force them out before the lease ends unless they violate the terms of the lease and you evict them.

Just show them on paper how they would benefit by doing that like the more money and possibly their tax liability by spreading out their income. 

Should I follow up with her and let her know that I can get the house sold so she can benefit from the current market trend that is slowly starting to shift?

If you think you will benefit from some appreciation, you could keep it, but if you are looking to make cashflow I would sell it.

Control the process and create systems, something it took us a long time to figure out.If everyone knew how amazing of an opportunity real estate if for wealth creation, tax benefits and lifestyle, everyone would be doing it.

In addition to what Wayne said the seller will have to pay imputed interest gain and will make almost or maybe ZERO cash flow if he takes this to an accountant .. or anyone who knows anything about these seller carry backs your going to have push back I suspect unless your paying WAY over market.I have sold a lot of my OREO over the years with ZERO % owner carry but always set them up short term.. 30 months 40 months that sort of thing ..

I’d be happy to discuss Exeter 1031 and the benefits of using us as your Qualified Intermediary.