Why pay taxes on that rental property you are selling? Since 1921 the IRS allows 100% of realized gains from property sales in a trade or business to be deferred.
If an investor sells a property and uses the proceeds to buy a similar property, they can defer capital gains and losses indefinitely or until they make a final sale of a property –1031 Exchange.
“But I do not want to manage another property that is why I sold this one.” You do not have to let me introduce you to Delaware Statutory Trusts (DSTs).
Accounting and the Lump 