Have you considered the fact is you can invest up to 80% of the funds into a new LLC the next day or at any time all tax-deferred?

I’m in the 33% tax bracket through my real job and this could be a big difference in taxes owed if we sold the property?

@Tyler Speelman, A 1031 exchange solves the tax issue. 

Appeal Property Tax AssessmentsProperty taxes are a significant expense for real estate investors, but they aren’t set in stone.

Focus on tax-saving strategies such as cost segregation studies and bonus depreciation to accelerate deductions.By qualifying as a Real Estate Professional (spending 750+ hours annually and materially participating), you can offset your wife’s S-Corp income with real estate losses, reducing your tax liability.

I “assume” they meant you wouldn’t defer all your taxes if you used leverage on a $450k purchase instead of “spending” all your cash.

My understanding is that you can sell assets and defer capital gaines taxes in an opportunity zone until the property is sold.

Whether it still makes sense will depend on how much you can defer vs. the basis.

The 1031 exchange will indefinitely defer all tax on profit and all depreciation recapture.

When we looked at what his cashflow is currently, and then considered what he would net out of a sale post tax, he decided to keep owning the properties.