How to Avoid Capital Gains Tax: Strategies for Family Offices
Strategic approaches to minimizing capital gains tax exposure through 1031 exchanges, DSTs, opportunity zones, and more
The Capital Gains Challenge
Mini investors and family offices struggle with creative capital gains strategies. With federal rates up to 20% plus the 3.8% net investment income tax, effective rates can exceed 30%. Strategic planning is essential for wealth preservation across generations.
1031 Exchange Strategies
Section 1031 allows deferral of capital gains by exchanging investment properties for like-kind replacements. Key requirements include the 45-day identification period, 180-day exchange period, and use of a qualified intermediary. This remains one of the most powerful tools for real estate investors.
Delaware Statutory Trust (DST) Funding
DSTs offer passive real estate ownership while qualifying as 1031 exchange replacements. Benefits include access to institutional-quality properties, fractional ownership starting at $100,000, and estate planning advantages through step-up in basis at death.
Opportunity Zones
Qualified Opportunity Zones provide three distinct tax benefits: temporary deferral of capital gains, basis step-up for long-term holdings, and permanent exclusion on new gains after 10 years. Our Deal Flow Scoring Algorithm evaluates opportunity zone investments against market demand data.
The Multi Family Office AI Advantage
Our scoring system evaluates every investment opportunity through a tax-efficiency lens. Deals incorporating tax-advantaged structures consistently score higher on our Geek Score system. Upload your deal for comprehensive tax-strategy analysis.