Tell me I'm nuts

[Earl Weiss]

Taxes on profits. If you do an instalment sale, you should be able to pay taxes as instalment are rec'd, in the proportion that the instalment / downstroke is to the overall price. Recapture is taxed at ordinary income rates and other profit at capital gains rates. You could only roll over into a 1031 exchange and defer taxes if you allocate the entire price to the property and roll over the entire price into new property. Since you likely depreciated something, you would have to allocate at least this much of the price to the amount of depreciation and rol over what is left. Depending on your situationand what is done with tax laws in the future some escape taxes by "Dying out of the property" which takes advanted of estate tax exemptions and "Stepped up basis" advantages.