HOW TO REDUCE CAPITAL GAINS TAX

A Section 1031 exchange is the most commonly used strategy for investment or business-use real property, deferring capital gains and depreciation recapture by rolling the gain into a replacement property rather than recognizing it at sale.

A properly structured Delaware Statutory Trust interest can qualify as replacement property in a 1031 exchange, allowing a passive investor to defer gain without direct management. Delaware Statutory Trust interests are securities, and we do not sell securities; we provide introductions to licensed providers only.

An installment sale under Section 453 spreads recognition of gain over the years payments are actually received from the buyer, rather than recognizing the full gain in the year of sale. This does not eliminate tax but can help manage marginal bracket and Massachusetts Fair Share surtax exposure by avoiding a single large income spike.

Yes. Property passed to heirs generally receives a basis reset to fair market value at the date of death under Section 1014, which means lifetime appreciation is generally never taxed as capital gain if the property is held until death rather than sold during the owner's lifetime.

A charitable remainder trust can allow an investor to contribute appreciated real estate, receive an income stream, and reduce or defer capital gains along with generating a partial charitable deduction, though it requires irrevocably transferring the property and should be structured by an estate planning attorney.