[davisdonna]

Hello,

Is there any way to minimize the tax burden attached to selling a multi apartment building with commercial space on the ground floor in a high value area of New Jersey? I'm wondering if my parents sold their own home and moved into one of the units if that would help any. We're expecting that these buildings should fetch in the $1MM range and were probably purchased for less than $50,000.

Thank you,
Donna

[AtlantaTaxExpert]

Donna:

Have you considered a 1031 like-kind exchange?

That would allow you to sell the property and buy another similar property in order to defer the taxes on the property.

As for your parents moving in, you would have to sell them a portion of the property at fair market value, then delay the sale for AT LEAST two years to get any benefit from it.

BTW, THEY would get the favorable tax benefit, NOT you.