Capital gain from sale of rental property
My DH and I have a rental property which, if sold, would result in a capital gains tax of about $50,000. We have considered moving back to the place for 2 years to get the capital gains exclusion or doing a 1031 exchange, but both of these options are not ideal for us. I saw something on the net about “structured sales annuities” and “ensured installment sales” which sound like ideas worth exploring. The basic idea is you convert the cash from the sale into an annuity which would spread the capital gain over 10 years or more. You would still pay the capital gains tax but it would be deferred which would clearly be an advantage. This idea was developed by Allstate and I believe Prudential marketed this product as well. I would be interested in knowing your thoughts on this.
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