There’s no way to fully avoid capital gains tax legally, but common strategies to reduce or defer it include:
- Installment sale, spreading payments (and tax) over several years.
- Qualified Small Business Stock (Section 1202) exclusion, if eligible.
- Rolling gains into an Opportunity Zone fund.
- Structuring the sale as a stock sale with favorable timing.
- Charitable remainder trusts, donating a portion pre-sale.
- Offsetting gains with capital losses (tax-loss harvesting).
- Retirement plan contributions before the sale year.
Rules are complex and change often. Consult a CPA or tax attorney before deciding, since I’m not a financial or legal advisor.