Straight-sale, installment sale, or real estate exchange? Which is better in terms of taxes?
Straight-sales are clear outright sales of property and depending on your situation may or may not trigger an imposed tax. For a real estate exchange like a 1031 exchange you are essentially trading property and no tax would be due with the exception of any cash payments received. An installment sale may be desirable also as it will allow you to delay and spread tax payments over several years. What’s better will depend on your individual situation. Consult with TaxMax and we can explain more!