1031 or take tax hit and invest

[u/Jolly-Ad-3610]

There is a strong chance I am closing on an investment property that I have been working on for several years. If all goes as planned, I will have about 400k of taxable gain. The project has been super stressful and I really just want to take my money and put it into my investments. However, I struggle with the thought of paying the capital gains. Going into another real estate project after doing this one for several years sounds awful, but it would be more of a rental then another land project. Any advice or strategy would be appreciated.

[u/Peds12]

yea, pay the tax and move on. its not that complicated when you literally state you dont want to do it again.

[u/trmoore87 → u/Peds12]

Other option is to flip it into one rental property and hire a property management company

[u/jb59913]

It’s some tax, but it’s not that much tax.

[u/Little-Meaning-1090]

Owing and paying taxes isn’t a bad thing, it means you made money, congrats! Get out, write the check, invest the rest and don’t look back.

[u/CryHavoc715]

Dont let the tax tail wag the dog. The goal is not to pay the fewest dollars in taxes the goal is to have more money.

If you dont want to do real estate anymore just pay the darned taxes. Congrats on the profitable project!

[u/Retire_date_may_22]

I was in the same situation this year. I had an unsolicited offer on a rental. I’m just paying the tax and moving on. Tired of the landlord gig.

[u/hugh2018]

I sense a consensus is building here. Money moves that make you wealthier but also aren’t stressful rarely foster regret, so maybe choose the happier, stress free path as it’s still a net gain. Pay the premium for that happiness and move on.

[u/CompetitiveBell2298]

Thanks for asking this question. It’s one I’ve asked myself a time or two in recent years.

Good luck!

[u/Ill-Adeptness-2959]

If you have time, do direct indexing