When families inherit land and want to sell without buying more property, a 1031 exchange defers capital gains tax by reinvesting in similar real estate. But that strategy doesn't work for retirees or those done accumulating. The question becomes: what options exist for sellers who don't want to hand the government decades of accumulated gains.
kids and grandkids aren't interested in it and it's time for the property to sell, or they've been approached by a developer and they think this is the way to go. And we're not gonna go down the data center road, but the data center buyers are paying astronomical numbers. And the family that's thinking of selling is trying to figure out what to do if they say yes. Well, when we were at the National Land Conference, we were having a session with this team about the alternate to the 1031 tax-deferred exchange. And for anybody that's in real estate, you already know that's the part of the tax code that allows you to sell a piece of real estate and move it into another like kind of real estate and defer your taxes for later, which works if you're still in your productive years and you're moving your money from one vehicle to the other. But if you're at the end and you don't want to buy more real estate, Are there ways to avoid giving the government the money that you've worked so hard for over all these years?
