Tax strategies for selling stocks and invest in property

[Pete Kay]

Hi All,

I’m selling stocks (selling around $500k , around 50% of it is long term gain) to invest in a property. I’m already in high tax bracket ($350k income) . I’m selling mostly long term capital gains but I need to pay 20% on long term cap federal and 13% California effective 33% on my cap gains. Are you aware of any tax strategy in this situation? My CPA sucks , CPA recommendation is appreciated 

[Ashish Acharya]

Originally posted by @Katie L.:

@Pete Kay

Not sure if you're willing, but you could look into the brand new Opportunity Zones recently enacted under the Tax Cuts and Jobs Act to see if it applies to your situation and if you're willing to invest in one.  I know several CPAs I can give you names for in So Cal, mostly centered in San Diego.  Also, don't forget about the net investment income tax as well in completing your estimates of tax.  There may be some interesting things you can do if you are willing to donate to charity.  

*This post does not create an attorney-client or CPA-client relationship.  The information contained in this post is not to be relied upon.  Readers are advised to seek professional advice.

Agreed with Katie. Opportunity Zones are perfect in your situation to initially defer(avoid 15%) of your realized cap gain and eventually avoid the appreciation on your investment. Talk to your professional about this.