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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.

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    Are you asking for advice on how to break the law? – Pete B. Mar 27 '17 at 14:53
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    Related: money.stackexchange.com/questions/24137/… – BrianH Mar 27 '17 at 17:09
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    @PeteB. Tax avoidance is perfectly legal; tax evasion is not. In the original version of the question, the OP asked how he could avoid paying taxes on the gain, not how to evade paying capital gains tax. – Dilip Sarwate Mar 27 '17 at 19:46
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    Keep in mind that your basis in the property is likely to be less than $700K if you have owned the property for some time, and this will increase the capital gains from the sale. – Dilip Sarwate Mar 27 '17 at 19:57
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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.

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