Rental Property Investor · Clarksville, TN · Member since 2017 · 91 posts · 147 votes
Has anyone created a qualified opportunity fund (QOF) with a corporation or partnership and successfully invested in a Nashville Tennessee or Clarksville TN? It seems like a great program and I was really excited to see Clarksville and Nashville having multiple census tracts.
This should be a exciting time to invest with the news today of Nashville getting 5,000 amazon jobs for the operations center of excellence with average wage of over 150K.
Rental Property Investor · Clarksville, TN · Member since 2017 · 91 posts · 147 votes
7y
Vernon,
Thanks for your input, however I am not looking for someone to invest with me, nor am I offering a proposal to seek an investor. If you will note I mentioned "successfully invested'' being past tense as I am not offering realtor services.
I want to create an open topic of discussion on the subject about peoples experience on this particular topic.
Clarksville, TN · Member since 2017 · 7 posts · 7 votes
7y
@Bryce Stclair Although I do not have experience with QOF, I am also very interested in opportunity zones, specifically in Clarksville. From my understanding, this allows an investor to sell stocks or another investment and reinvest the capital gains into real estate without paying capital gains tax. Is that what you are tracking?
Rental Property Investor · Clarksville, TN · Member since 2017 · 91 posts · 147 votes
7y
Yes it is @David Steele. The thing I find interesting is that you have to form a partnership or corporation to invest the capital gains. You have to hold the investment in a opportunity zone for at least 10 years to see the real benefit of not paying the capital gains.
Realtor · Clarksville, TN · Member since 2017 · 89 posts · 42 votes
7y
@Bryce Stclair man stop creating these fake posts with misleading information being all shady and stuff, HAHAHA! What is that guy even talking about. Great questions buddy, should have invited you to our presentation yesterday in Nashville with some of our investors (my bad!). Seems like the feedback we got was its a good incentive, but not enough to push people to do questionable deals. Basically, if its a good deal already then its just icing on the cake to be in the zone. These guys really emphasized that investors want that liquidity option for the most part. Creating a fund would have to be well thought out for those who might want to leave the fund early, and how they are going to pay that tax bill due in 2026 no matter what. Give me a call if you want to get deeper into it, our team really feels like we got the details nailed down.
Yes it is @David Steele. The thing I find interesting is that you have to form a partnership or corporation to invest the capital gains. You have to hold the investment in a opportunity zone for at least 10 years to see the real benefit of not paying the capital gains.
This isn’t 100% accurate. You don’t have to be in a partnership or corporation, any individual can’t start a fund. You can self certify on The IRS.gov website. You do have to hold the investment for ten years to recieve the full benefit but it worth it if you save 100% of the capital gains tax. Also note that you have to improve the property, land, etc. so if you purchase a home or business for say $10,000 you have to also put a minimum of 10K into it for improvement. If you really want to learn more, find a class to attend. That’s what I did.
Rental Property Investor · Clarksville, TN · Member since 2017 · 91 posts · 147 votes
7y
Thanks for the info @Lakendrick West! I haven't had time to make it to a class yet but hope to soon!
@Rylan
@Rylan Kean I will give you a call for sure! I wouldn't have been able to make it since I still have to do Army stuff and all but look forward to linking up again soon!
Yes it is @David Steele. The thing I find interesting is that you have to form a partnership or corporation to invest the capital gains. You have to hold the investment in a opportunity zone for at least 10 years to see the real benefit of not paying the capital gains.
This isn’t 100% accurate. You don’t have to be in a partnership or corporation, any individual can’t start a fund. You can self certify on The IRS.gov website. You do have to hold the investment for ten years to recieve the full benefit but it worth it if you save 100% of the capital gains tax. Also note that you have to improve the property, land, etc. so if you purchase a home or business for say $10,000 you have to also put a minimum of 10K into it for improvement. If you really want to learn more, find a class to attend. That’s what I did.
That is actually completely false. It absolutely has to go through a partnership or corporation. Yes it is self reported, but it has requirements. I can also tell you that the amount you have to improve the property is not equal to the purchase price. It’s a percent calculation of assessed land and property value multiplied by the purchase price. Other then building on raw land almost no property would work as an actual investment if you had to spend the purchase amount on improvements. Lastly, your original gains aren’t tax free, just the base reduced. The new gains on the investment are tax free after 10 years however that tax bill on the original is due Dec 2026 no matter what.
I have sat through several presentations, gave our own presentation two days ago, read the whole irs guideline currently in place (they haven’t even finalized these either) and have actual investors working to do this with us. We also have a real estate focused cpa who is an expert in ozones and real estate who assists us in developing our strategy. I would advise anyone looking to do this to consult an expert because it’s not that simple, nor is it something you can jump into and figure out later.
Investor · Washington, DC · Member since 2016 · 3 posts · 0 votes
6y
I'd be interested in more information if anyone has explored this further? What's the best next step to get more information, specifically related to Clarksville? Would it be calling the Montgomery County tax or assessors office?