Find how could defer the tax under current tax law

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John and Mary, husband and wife, have owned an apartment building in Santa Monica for the last 40 years. They originally paid $250,000 for the apartment building but it has been fully depreciated and has a basis of $100,000. The property brings in about $150,000 in cash flow net of expenses. Assume that John and Mary have no children and are more concerned about income in the future than they are on leaving the property to any of their relatives. Assume that the property is worth $15,000,000.

Problem 1. What recommendations, if any could you suggest how they could defer the tax under current tax law.

Reference no: EM132819936

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