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.

By , Founder & Chief Strategy Architect ·

The TaxWealth Approach

TaxWealth enables property owners to exit valuable assets without being forced into a reinvestment strategy or giving up liquidity. By strategically structuring the transaction to postpone the timing of federal tax obligations, clients preserve more of their wealth at closing. This approach increases usable capital, maintains full tax compliance, and provides the freedom to direct proceeds according to their financial and legacy goals.

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.

Case Study Details
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Transaction Range
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Projected Conventional Tax
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Projected Savings

Detailed transaction figures for this case study are added as the completed analysis clears publication review.

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