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.

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.