Case Study
Commercial Office Buildings

Selling large commercial office buildings often triggers multiple layers of tax liability—from federal and state capital gains to depreciation recapture and net investment surtaxes. These obligations can consume millions in proceeds, particularly in high-cost states like California. For owners with debt on the property or seeking an exit without reinvestment, traditional tax deferral tools offer limited relief, making it difficult to preserve equity or redeploy capital efficiently.

The TaxWealth Approach

TaxWealth delivers a fully compliant solution designed for commercial property owners who want to maximize liquidity and avoid the constraints of a 1031 exchange. By restructuring the transaction to shift the timing of tax obligations, our strategy enables sellers to retain more capital at closing—while eliminating forced reinvestment and preserving long-term flexibility and control.

The Problem

An investor sold commercial office buildings for $14,900,000. Under a conventional sale, the total tax liability reached $4,539,322, leaving the seller with a negative net outcome after debt payoff. Taxes consumed a substantial portion of equity, eliminating liquidity and placing the seller in a loss position despite a high-value transaction.

The Solution

Using TaxWealth’s planning strategy, the seller legally postponed tax payments and received a net distribution of $13,522,295. After clearing existing debt, they retained $1,522,295 in usable capital—unlocking a $3,608,616 increase in available funds compared to the conventional structure and turning a projected loss into positive liquidity.

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Our proven approach has helped business owners, real estate investors, and high-net-worth individuals increase their profits by 20-40% through tailored tax strategies. Don’t leave money on the table—discover your tax-saving potential today!