Good Morning and Happy Halloween,
This last week, we’ve had a number of families ask about Opportunity Zone Funds, so this week we’re discussing when they might be worth taking a closer look.
Did you get hit hard with Capital Gains Taxes in 2019? Have you sold real estate, or had a business exit in 2020 that resulted in significant gains?
If so, you may want to discuss personal Opportunity Zone funds with Park City Family Office. There is a common misconception that Opportunity Zones are purely for institutional investors to take advantage of commercial building in underserved areas. This is absolutely not the case! An Opportunity Zone fund can be set up in your own personal fund for any amount of capital gain (although we recommend >$250k). An eligible investor establishing a qualified Opportunity Zone fund can defer reporting initial gains for up to eight years. During the eight years funds can be invested, which provides ample time to make thoughtful long-term decisions. The bottom line; opportunity zones allow investors to defer capital gains or to avoid an unfavorable 1031 exchange (happy to explain issues with a 1031 exchange at another time).
We hope you will take the “opportunity” to learn more. We would be happy to facilitate a conversation with our colleague Blake Christian of HCVT who is an expert in this field. Happy weekend all. Morgan and Bruce