You're done with tenants, repairs, and midnight calls, but if you sell, the capital gains tax and depreciation recapture take a brutal bite, and a 1031 just buys you another building to manage. There's a better exit.
Every long-time landlord eventually hits the wall: the property's been good to you, but you're tired of the tenants, the repairs, the vacancies, and the calls. You want out, and you want the equity working for you instead of you working for it. The problem is the tax: sell, and you face capital gains, depreciation recapture, the 3.8% surtax, and (in California) up to 13.3% state. And the "obvious" answer, a 1031 exchange, just hands you another building to manage.
Send me the sale price and rough basis. Within one business day I'll email you the actual number and the Seller's Guide to §453. If it doesn't fit your deal, I'll tell you that plainly.
No retainer · no obligation. Hans Goldstein, a licensed insurance agent (CA Insurance License #4273294), will contact you and may discuss insurance products, including annuities.
A 1031 defers the tax, but only if you buy more real estate on a strict deadline. If your goal is to stop being a landlord, a 1031 is the wrong tool. It keeps you in the game you're trying to leave.
A §453 structured installment sale lets you sell the property, walk away from landlording for good, and receive the proceeds, and pay the tax, over a schedule of future years. Instead of one big tax bill in a single year, you get:
You don't have to choose between "keep dealing with tenants" and "hand a third of my equity to the government." A structured installment sale lets you sell, stop landlording, and turn decades of equity into scheduled income that is taxed over years instead of all at once. Run your numbers before you list.
A §453 structured installment sale lets you sell, exit landlording entirely, and spread the capital-gains tax over several years while receiving scheduled payments. Unlike a 1031, it doesn't require buying another property to manage.
A 1031 only defers tax if you reinvest in more real estate within strict deadlines, which keeps you a landlord. If your goal is to stop managing property, a structured installment sale lets you exit while still deferring the gain.
Yes, depreciation recapture is generally recognized in the year of sale, even in an installment sale. A structured installment sale spreads the capital-gain portion; the recapture should be planned for separately.
Yes. A structured installment sale converts your sale proceeds into a fixed schedule of payments. An assignment company owes you those payments and funds them with a fixed annuity from a highly rated life insurer.
It depends on your gain, basis, and income, but spreading often keeps more of the gain in lower brackets and reduces the 3.8% surtax. Use the free capital gains tax calculator or call 213-414-2808 to see your specific numbers.
Before you sign anything, run your numbers with someone who structures the deal to be tax-smart and audit-ready from day one.
Call 213-414-2808 Run the Numbers →
Send me the sale price and roughly what you paid. Within one business day I’ll come back with the number you’re actually looking at on a rental property sale, and whether a structured installment sale can push it down. If it can’t, I’ll tell you that just as plainly.
Leave your details and the PDF downloads right away. Within one business day Hans will email a preliminary read on which structure fits your deal. No retainer. On a funded structure, the insurer pays a one-time commission of about 4% of the amount structured to the brokerage firm that places it (Hans’s share is about 2.4%; no trail). It is built into the annuity pricing, not a separate fee.
📞 Hans Goldstein · 213-414-2808 · CA Insurance License #4273294 · Independent §453 specialist · Goldstein & Co. LLC
Hans Goldstein, a licensed insurance agent (CA Insurance License #4273294), will contact you and may discuss insurance products, including annuities.
Hans Goldstein is an Enrolled Agent, admitted to practice before the Internal Revenue Service. Not affiliated with or endorsed by the IRS. General education, not tax or legal advice for your situation.
