OPPORTUNITY ZONES: TAX DEFERRAL, TAX REDUCTION, AND TAX ELIMINATION
Attend Our Opportunity Zone Event
- Date: Thursday, October 3rd
- Time: 12:00pm to 1:00pm
- Location: Boulder Marriott
2660 Canyon Boulevard
Boulder, Colorado 80302
Join APO Financial to learn about what many are saying could be BIGGEST TAX BREAK IN U.S. HISTORY! Using Opportunity Zones, invest your capital gains from the sale of virtually any type of property including stocks, real estate, sale of a business, etc., and receive these THREE AMAZING TAX BENEFITS:
- DEFER the taxes due on your capital gain until 12/31/2026 and earn investment returns along the way!
- REDUCE the amount of taxes owed on your capital gain by up to 15%!
- ELIMINATE all the tax on capital gains earned on your investment for life!
APO Financial founders John Goodhue and Brian Gray, authors of Opportunity Zones: Biggest Tax Break EVER!, and Radio Hosts of the Opportunity Zone Radio Show on Sat. at 2pm on KNUS, cordially invite you to join them for an enlightening educational lunch and learn workshop to learn how Opportunity Zones could potentially benefit you. Register for this free event today!
What Are Opportunity Zones?
The Tax Cuts and Jobs Act of 2017 included a section entitled the Investing in Opportunity Act. This new law created what many are saying could be the biggest tax break in U.S. history, the creation of what are known as “Opportunity Zones”. The Act allowed the governors of each state and heads of all U.S. territories to designate certain areas in their states and territories as “Opportunity Zones”. Each Opportunity Zone has to be in an area that is economically distressed based on certain census criteria. All fifty states and U.S. territories participated and created over 8,700 Opportunity Zones.
The stated purpose for the creation of Opportunity Zones is to attract private investment into economically distressed areas throughout the country via significant Tax Deferral, Tax Reduction and Tax Forgiveness treatment of these investments. It is estimated that there is $6.1 Trillion in paper profit capital gains just in the U.S. stock market. Much more than that is tied up in the value of small businesses and real estate.
There is very little government oversight provided in the Act. The Treasury and IRS are empowered to issue regulations to better define what the Act means but there is no IRS approval needed in any area. Instead, the Act sets up an easy to implement self-election format that allows literally anyone to take advantage of the Opportunity Zone opportunity.
Defer, Reduce and Eliminate Capital Gains Taxes
Opportunity Zones are designed to encourage long-term investment into distressed communities, so the longer you keep your money in an Opportunity Zone investment the larger your tax benefit. The tax breaks occur after the 5th, 7th, and 10th year of your investment.
- Deferral: If you sell an appreciated asset such as stock or real estate and make an Opportunity Zone investment, you can defer recognizing the capital gains tax until December 31, 2026.
- Reduction: If you sell your investment after 5 years 10% of your original deferred capital gains tax is excluded from taxation. And If you sell your investment after 7 years, 15% of your original deferred capital gains tax is excluded from taxation.
- Forgiveness: If you sell your investment after 10 years, you can exclude 100% of the gains that you have made on your Opportunity Zone investment forever.
A tax savings solution for your appreciated stock portfolio with an investment in an Opportunity Zone you can defer and reduce the capital gains tax on your stock and potentially eliminate all of the gains realized from your Opportunity Zone investment.
A liquidity solution for your real estate portfolio you can sell your real estate, retain your non-taxable basis to fund your lifestyle and invest the appreciated portion of the sales proceeds into an Opportunity Zone investment. You can’t do that with a 1031 exchange.
- Diversify your portfolio with real estate. You can choose where to invest geographically from properties around the country, as well as the types of properties you want to invest in.
- Invest in real estate without any of the management responsibilities associated with real estate ownership.
Are you interested in investing in income producing properties?
- Collect monthly income to enjoy the golf course or take the dream vacation you’ve always wanted. Real Estate investing can be extremely rewarding financially, especially when your gains are tax free! If you are looking for a strategy to eliminate or reduce capital gains taxes on your stocks or the sale of your highly appreciated income property, investing in an Opportunity Zone Fund may be the solution you have been waiting for.
Are you a current landlord tired of the responsibilities and dealing with the Terrible Ts?
- The terrible T’s are what an active manager of real estate, or a landlord is responsible for including toilets, tenants, trips to Home Depot, termites, and time spent. Many people like being real estate investors, but do not like being a landlord, have the time to spend on it, have the skill sets necessary to do it well, or have the energy.
Are you looking for an easily divisible asset to leave your heirs?
- Opportunity Zone investments can remove the temptation of liquidating assets too quickly.