LA's decades of appreciation are a blessing until you sell, then federal capital gains, depreciation recapture, the 3.8% surtax, and California's 13.3% can take a third of your gain in one year. Here's how to spread it.
Los Angeles property owners are sitting on enormous gains, a duplex in Silver Lake, a fourplex in the Valley, a commercial building on the Westside, a long-held rental in Pasadena or Santa Monica. When you sell, the tax can be staggering, and LA's tightening rent rules have a lot of owners ready to get out. Here's how to exit without handing a third of your equity to the government.
Send me the sale price and rough basis and I'll email you the actual number within one business day — plus the Seller's Guide to §453. If it doesn't fit your deal, I'll tell you that plainly.
No retainer · no obligation · the carrier compensates the broker, not you.
Two things collide: massive appreciation (huge unrealized gains) and a landlording climate, rent control, AB 1482, and tenant protections, that's pushing many owners to sell. But a one-year sale stacks federal capital gains (up to 20%), depreciation recapture, the 3.8% NIIT, and California's ordinary-income rate (up to 13.3%). California gives capital gains no preferential rate.
A §453 structured installment sale lets you sell, a rental, a commercial building, a business, an appreciated position, and receive the proceeds over future years, recognizing the gain (and paying the tax) gradually. The result: more of the gain in lower brackets, a softer 3.8% surtax, and guaranteed income from an A-rated carrier. And unlike a 1031, you don't have to buy another LA property and keep managing it.
An LA sale is likely the biggest financial event of your life. Between federal tax, recapture, and California's 13.3%, the one-year hit can be brutal, but it's plannable. Run your numbers and set the structure before you list or sign.
Federal capital gains up to 20%, plus the 3.8% NIIT, plus depreciation recapture, plus California tax up to 13.3% (no preferential rate for capital gains). On a large LA gain the combined bite can approach a third.
Yes. A §453 structured installment sale spreads the proceeds and the gain over several years, keeping more in lower brackets, and unlike a 1031, you don't need to buy a replacement property.
A structured installment sale lets you sell and exit landlording entirely while deferring the gain over years and receiving guaranteed income, rather than doing a 1031 that keeps you owning property.
It depends on your goal. A 1031 fits if you want to keep owning real estate and can meet the deadlines. A structured installment sale fits if you want to exit, are selling a business or stock, or can't find a replacement property.
Use the free capital gains tax calculator to estimate your number, or call 213-340-2018 to run your specific Los Angeles situation before you sign anything.
Before you sign anything, run your numbers with someone who structures the deal to be tax-smart and audit-ready from day one.
Call 213-340-2018 Run the Numbers →
A plain-English guide for sellers: how a structured installment sale defers the tax when you sell a business, practice, or property — the math, the alternatives, and how to know if your deal fits.
Drop your info — instant PDF download + within 1 business day Hans will email a preliminary read on which structure fits your deal. No retainer. Carrier compensates the broker — not you.
📞 Hans Goldstein · 213-340-2018 · CA Insurance License #4322192 · Independent §453 specialist · Goldstein & Co. LLC
