| Good Afternoon - Would it help your business if you could show your clients a way to defer the Capital Gains Tax on the sale of their business?
You've seen a handful of emails from me on the topic of the new Opportunity Zones as an investment vehicle for tax deferral and diversification.
I've seen estimates from various economic think tank folks that say the current marketplace for Opportunity Zone Investments could reach $6 trillion.
Quick Summary of OpportunityZones:
Created by the Tax Cuts and Jobs Act of 2017 to promote long-term investment into low-income rural and urban communities, OZs are geographies where qualifying investments in property or businesses benefit from deferral of realized capital gains through the end of 2026.
Investors with unrealized capital gains in any existing investment (whether a business, stocks, bonds, real estate or other) can liquidate that holding and roll the proceeds into an OZ investment without paying the capital gains for as long as they remain invested in the OZ, up to seven years.
On top of that, investors enjoy a 10 percent reduction in their capital gains liability after five years or a 15 percent reduction after seven. As such, in order to maximize the tax benefit and take full advantage of the 15% reduction, investors have every incentive to deploy capital to OZs before Dec. 31, 2019, a full seven tax years ahead of the end of the deferral period. My broker dealer, Emerson Equity LLC has completed due diligence and approved for sale a number of Opportunity Zone Funds covering asset classes in retail, multifamily, storage, student housing and medical office. We also represent single properties as well as mini portfolios.
Personally, when it comes to OZ Funds I prefer the portfolio approach simply because of the extra safety through diversification. Because I see the big risk in all of these funds as the developer's ability to hit their projections on the completed project, I want to see developers that have a proven track record of success.
For example, one of our Opp Zone Fund Developers completed the rebuild of the World Trade Center after 9-11. I like developers with that kind of successful track record.
If you'd like to learn more about deferring Capital Gains through Opportunity Zone investments, I'd love to share with you some current offerings.
Give me a call to discuss- 239-898-8918.
Thank you for your interest & let me know how I can help,
Steve
239-898-8918
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