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Tax, SDIRAs & Cost Segregation

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Bette Hochberger
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  • 33301
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Leveraging Opportunity Zones for Tax-Advantaged Investments

Bette Hochberger
  • Accountant
  • 33301
Posted Dec 11 2023, 13:32

Investing in Opportunity Zones can offer significant tax advantages, including deferred and reduced capital gains tax and tax-free appreciation on long-term investments.

Key Points:

  1. Tax Deferral: Capital gains reinvested in Opportunity Zone Funds can be deferred until the earlier of the investment's sale or December 31, 2026.
  2. Step-up in Basis: Holding the investment for at least 5 or 7 years allows for a 10% or 15% step-up in basis respectively, reducing the taxable gain.
  3. Tax-Free Growth: If the investment in the Opportunity Zone Fund is held for at least 10 years, any appreciation is tax-free when sold.

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Michael Plaks
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#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
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Michael Plaks
Pro Member
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
Replied Dec 12 2023, 03:26

Unless a new proposed legislation passes, #2 has expired. 
And the chances are not great, as far as I heard.