Case Study
Four-Plex Investment
Property

Selling investment real estate, even modestly sized properties like four-plexes, can trigger significant tax consequences. Federal capital gains, depreciation recapture, net investment income tax, and state income taxes can quickly reduce net proceeds. For owners seeking to exit cleanly without being forced into a 1031 exchange, conventional strategies often fail to preserve flexibility and maximize post-sale liquidity.

The TaxWealth Approach

TaxWealth helps real estate investors realize more value from their exits without reinvestment pressure. By restructuring the transaction to legally shift the timing of tax obligations, sellers retain more capital at close while remaining fully compliant. The result is improved liquidity, increased optionality, and freedom to use capital on their terms.

The Problem

An investor sold a four-plex in Arizona for $3,000,000. Under a conventional sale, the total tax liability was $752,085, leaving only $1,472,915 in net proceeds. Nearly a quarter of the sale’s value was lost to taxes, limiting liquidity and reducing the seller’s reinvestment flexibility.

The Solution

Using TaxWealth’s strategy, the seller legally postponed tax obligations and received a net distribution of $2,030,000. With $190,922 in added tax savings, the transaction delivered a 37.8% increase in available capital compared to a conventional approach—while preserving future planning options.

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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!