How to avoid capital Gains
Have a potential client that does not want to sell his single family home investment because it is fully depreciated and does not want to pay a chunk to capital gains. Does anyone have a solution for these circumstances?
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He could 1031 exchange into a similar value property and offset his rental income by depreciating higher cost basis. Property tax would be higher, but if his current property is fully depreciated, he should still come out way ahead even with an exchange into a similar property.