Defer Your Taxes Opportunity - Opportunity Zones

[Tony Hoong]

With the new tax reform it brought a new chance for us to defer our taxes with Opportunity Zones. With the Investing in Opportunity Act, it will allow investors to defer their taxes by re investing their money into an "opportunity zone". This is very similar to the 1031 exchange, however it allows gains on property AND stocks to be deferred for 9 years. 

Opportunity zones are designated areas of each state (which tend to be more developmental/low income areas) where the reinvestment occurs. 

The basis of the property increases 10% of your original gain at the 5 year mark, another 5% at the 7 year mark, and after 10 years the gain is capped off. 

New and exciting chances for us to defer taxes for those that invest in real estate and stocks. 

[Ashish Acharya]

Yes, the benefits are related to capital gains.