I am selling a Sixplex. I paid $700,000 for it and can sell it for about $1,300,000. How can I minimize capital gains on the profit?
I don't want to buy another property.
There is no easy way to avoid a 20% capital gains tax on amounts over $415,000.
You can break the gain into different years by deferring payment. For example, if you sell the property for a cash payment of $650,000 and a one-year promissory note for $650,000 then half of the gain is unrealized. So in that case you would pay 15% tax on each half, but you would have to wait until next year to get the other half of your money. Whether that is worth the 5% savings is questionable. Obviously the counterparty would have to agree to signing the promissory note.
Note that if you get too creative with capital gains, it can trigger an IRS audit.