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How to Avoid Taxes Legally When Selling

What your financial advisor isn't telling you

  1. What is your adjusted basis?

  2. Do you know what it is?

  3. Calculating adjusted basis

  4. Initial Cost 

  5. + Closing Costs

  6. + Capital Improvements

  7. - Minus Depreciation

  8. Taxes you face (lowest to highest)

  9. Depreciation Recapture tax 25%

  10. Capital gains tax 15-20% Fed + 7-10% MN State

  11. Interest income tax (Ordinary Income Tax Rate)

  12. Tips from the Pros on how to avoid tax

  13. Take a higher price on a contract for deed with a lower interest since your principal payments are taxed at a lower rate than the interest

  14. 1031 Exchange into other real estate

  15. Installment sale - Sell for higher price lower interest rate

  16. Take the money over time until your kids get a step up in basis

  17. Exchange for DST Membership Units

  18. Roll into qualified opportunity fund

  19. UPREIT your property Using a 721 Exchange


We are not offering tax or legal advice. We do, however, love working directly with your team of advisors to ensure that you are getting a comprehensive solution. Our approach is to be deliberate in our approach to the sale of your building to ensure you net the highest yield over time so you can achieve true financial freedom and spend your time doing the things you were called to do.

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