When it comes to selling real estate, investment property, or other appreciating assets, capital gains taxes can be a big hit to your bottom line. The good news? With the right strategy, you can defer (or in some cases avoid) these taxes and keep more of your hard-earned equity working for you.
Here are 13 proven strategies to help you defer capital gains taxes:
1. 1031 Exchange
Reinvest proceeds from the sale of an investment property into a like-kind property to defer taxes. Great for portfolio growth without an immediate tax bill.
2. Delaware Statutory Trust (DST)
Do a 1031 exchange into a professionally managed, institutional-grade property—ideal for passive investors who want income without the landlord headaches.
3. Installment Sale (Seller Financing)
Spread out your capital gain over several years by receiving payment in installments. This can reduce your annual tax burden.
4. Opportunity Zone Funds
Invest in Qualified Opportunity Zones and defer capital gains—plus you may reduce or eliminate them entirely with long-term holds.
5. Charitable Remainder Trust (CRT)
Donate appreciated assets into a trust to receive an income stream and defer taxes, while supporting a charitable cause.
6. Gifting Appreciated Assets
Gift property or stock to a family member in a lower tax bracket—they may pay less when they sell.
7. Primary Residence Exclusion
Live in the home for at least 2 of the past 5 years and exclude up to $250K ($500K for couples) of gain.
8. 529 Plan Contributions
Contribute appreciated stock to a 529 plan for education expenses, potentially avoiding capital gains.
9. Like-Kind Exchanges for Business Equipment
Certain business-use property may qualify for tax-deferred exchanges, not just real estate.
10. Upgrade to Larger Property
Use proceeds from multiple properties to purchase one larger asset via 1031, deferring gains while potentially increasing cash flow.
11. Deferred Sales Trust
This strategy lets you sell an appreciated asset and defer taxes while receiving the proceeds through a structured trust.
12. Use Losses to Offset Gains
Harvest losses in your investment portfolio to reduce the impact of capital gains taxes.
13. Hold Long-Term
Holding an asset for more than a year can reduce your tax rate due to favorable long-term capital gains rates.
🎯 Why Strategy Matters
It’s not just about knowing what options exist—it’s about knowing which ones are right for you. That’s where working with a strategic real estate professional makes all the difference.
As a Certified Real Estate Planner, I go beyond the transaction to help you:
✅ Build long-term wealth through tax-efficient real estate
✅ Protect your equity using the right tools at the right time
✅ Transfer wealth to the next generation with clarity and purpose
You deserve more than a quick sale—you deserve a plan.
🔍 Final Thoughts: Your Wealth Deserves a Custom Strategy
There’s no one-size-fits-all approach when it comes to deferring capital gains taxes. Each person’s financial goals, family needs, and timing are different—which is why it’s so important to work with a real estate professional who looks beyond the transaction.
As a Certified Real Estate Planner, I specialize in helping clients build a custom strategy to protect their gains, grow their portfolio, and create a plan for the future. Whether you’re looking to sell, reinvest, or retire from active management, I can help guide you through the options and connect you with trusted professionals who can help execute your plan.
⚠️ This information is not legal or tax advice.
But I work closely with attorneys, CPAs, and 1031 exchange intermediaries who are experts in their fields—and I’d be happy to introduce you.
📩 Reach out anytime to schedule a strategy call and explore what’s possible for you and your family.