Paying taxes on the sale of your real estate is voluntary. You do not need to volunteer.

Real estate investors use Section 1031 to avoid taxes when acquiring bigger and better properties. But now, when you want to cash out, Section 1031 is not the vehicle of choice. So what do you do?

This article gives you three strategies to help you cash out your real estate profits:

Use the combination of a charitable remainder trust and a wealth replacement trust to avoid taxes, increase personal cash flow, and increase the estate distribution to your children.

Use IRC Section 721 to invest the old property in a real estate investment trust and defer taxes.

Use an installment sale to pay taxes slowly. ... Log in to view full article.