Strategies for Deferring and Reducing Capital Gains, Part 2 [Webinar Recap]

The Qualified Opportunity Zone (QOZ) program was created by the Tax Cuts and Jobs Act of 2017 to encourage long-term investment in designated communities known as Qualified Opportunity Zones. QOZs are also required to be either new developments or substantial renovations must be made to existing buildings.

Can Banks Create Their Own Opportunity Funds?

Opportunity zones and opportunity funds were created by former President Donald Trump under the Tax Cuts and Job Act of 2017. President Trump created these investment opportunities in an attempt to turn around the economies in distressed, low-income, and underfunded areas. In order for a community to be recognized as an opportunity zone, it must receive that designation from the state and then be certified as such by the U.S. Treasury through the IRS.

Inflation or Deflation: What Is the Difference and How Do They Affect the Economy?

There’s a furious debate as to whether the current spike in inflation will be transitory or not. The FED has stated they are firmly in the camp of transitory inflation. However, many believe increased inflation is here to stay.

How to Defer Capital Gains After Exiting an Opportunity Zone

When you choose to invest in a Qualified Opportunity Zone (QOZ), there are several potential motivations. First, you may be seeking to defer the payment of taxes on capital gains earned on another investment. If that is one of the reasons, keep in mind that you must invest the eligible profit into a Qualified Opportunity Fund (QOF) within 180 days of the date that the gain would be recognized for federal income tax purposes.

What Is the History of Tenants-in-Common?

If you’re looking for a way to buy a piece of property with another person or people but don’t want to go to the trouble of forming an LLC, you can consider a Tenant-in-Common (TIC) structure.

Can I Purchase a Home While Renting a Property?

Buying an investment property is a way to diversify your wealth and seek a passive income. Many real estate investors own their primary residence and invest on the side to increase their asset portfolio. However, some investors live in a rental unit while simultaneously investing in rental properties.

Who Pays Net Income Investment Tax (NIIT)?

In a previous article, we discussed the concept of net investment income tax (NIIT). We outlined the fact that the 3.8% NIIT under the auspices of 26 U.S. Code § 1411 - “Imposition of Tax,” and is applied to net investment income (NII).

Can You Do a 1031 Exchange on Cryptocurrency?

The Internal Revenue Code has traditionally permitted investors to exchange real property used for business or held for investment purposes for other business or investment property of the same type and has referred to these swaps as “like-kind exchanges.” Thus, making such an exchange would not expose the taxpayer to taxes on any gain unless they received the increase as non-like property or in money.

Can Opportunity Zones Be Used for Equipment?

The Tax Cuts and Jobs Act of 2017 brought about many different kinds of tax reform, particularly for corporations and private investors.

What Is a Delayed Section 1031 Tax Exchange?

If you’ve been reading our blogs on a regular basis, you know all about the 1031 exchange. Sometimes called the “like-kind” exchange, Section 1031 of the Internal Revenue Code allows you to “exchange” a current property used for investment or business purposes (the “relinquished” property) into another property (the “replacement” property). Doing so means you can defer capital gains on the disposal of your relinquished property.

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