Can I take possession of the original principal/down payment on the houses and only place the taxable appreciated capital gains?

Created by Client Experience Team, Modified on Wed, 15 May, 2024 at 2:34 PM by Client Experience Team

No. In order to achieve 100% tax deferral, the full proceeds from the sale must be placed into the Deferred Sales Trust. However, you do not lose the 121 exclusion; it is just delayed until and if you receive the principal amount of the trust.

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