Many investors will not pay all of the tax when the bill from their investments in Qualified Opportunity Funds comes due at the end of this year. You may…

Many investors will not pay all of the tax when the bill from their investments in Qualified Opportunity Funds comes due at the end of this year. You may have invested $1 million, but you could only owe tax on $700,000? That is how they wrote the statute, and it may apply to you like it does for many of our clients.

Jeffrey Rosen, CPA, CGMA, MBA's post yesterday was perfect timing to announce our next project.

We have just completed the draft of our next book, “Qualified Opportunity Zones: the Definitive Guide to your Favorite Tax Incentive” with my longtime partner and co-author Vadim Ronzhes, a successor to the Book on Qualified Opportunity Zones, 2nd Edition published almost three years ago. We added all the new rules from the OBBBA and made the book more accessible for readers. In just a few months, we will publish and continue to support Frazier & Deeter’s national opportunity zone practice.

These are real savings; a client that recently made an opportunity zone investment will only recognize in income the lower of the amount of their investment or the fair market value of that same investment as of December 31, 2026 – when it is a non-voting interest in an LLC controlled by third-parties and no liquidation permitted for 10 years. This means that the gain recognized is a lot less than the original gain deferred, a huge win for taxpayers.

 As we head into tax planning season, our clients are working with us to figure out what they owe, and how we can help reduce their coming tax bill. At Frazier & Deeter, our team can walk you through how to deal with paying your bill under the old OZ rules, or help structure your new OZ investments under the new rules. And when you are ready to see how your OZ holdings fit for your family, only Mobena can model how an opportunity zone effects individuals, trusts or an entire family.

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