Join Tax Attorney John Hyre as he presents a 2-session webinar covering all you need to know about Opportunity Zones. The presentation will be geared towards small – medium real estate investors who want to have their own, private OZ “Fund” that qualifies for some exceptional tax benefits.

Why does it matter?

- If you invest in an OZ for ten years, rental properties and other investment real estate can be sold tax-free for the next 20 years.

• Unlike an IRA, you can still depreciate the property and take the tax write-offs personally. But when you sell, the sale is tax-free aka “no depreciation recapture”.
• The properties need not be held for 10 years – just the LLC that owns them
• The above example works with other assets, not just rentals

- The tax on the capital gains invested in OZ’s is deferred until 12/31/26. You still gotta pay it……but way later.
- Up to 15% of the tax on the capital gains invested in the OZ can be forgiven (and forgotten) if you hold the investment long enough
- You can convert, for example, stock into real estate in a very efficient manner
 

Example: I invest $10,000 in capital gains from the sale of stock (or anything else that generates capital gains) in an LLC that qualifies as an Opportunity Zone “Fund”. The tax on the $10,000 is deferred until 12/31/26, and I really only pay tax on $8,500. For ten years, the LLC buys rental properties using debt – either from the outside, or that I loaned to the LLC. After ten years it owns ten qualifying rentals that I pumped for depreciation and other write-offs. I can then sell some or all of the rentals tax-free. Of I can keep growing the LLC, buying more rentals, and sell those tax-free. I can keep it doing until 12/31/47.

It can be done by a Mom & Pop outfit. In other words, you (or you and your spouse) can have your very own “Opportunity Zone Fund”. It’s not that hard.

And it’s not that expensive. I have seen law firms charging $6,000 to $12,000 to get this done. Absurd. We’ll talk about that too.

Bottom line: New regulations from the IRS make OZ investment much more certain and much more beneficial than was the case two weeks ago.

We’ll walk you through it.