It may be possible to defer tax liability when you sell appreciated real estate or rental property. But be careful. An installment sale, for example, allows you to defer gains by spreading them over several years. However, ordinary gain from certain depreciation recapture will be recognized in the year of sale, even if you receive no cash. With a Sec. 1031 or “like-kind” exchange, you replace one investment property with another and defer paying tax on gains until you sell the replacement property. Yet if you use one of these strategies, and tax rates increase in the future, you could end up paying more tax. Contact us to discuss the most tax-efficient option for your situation. © 2025