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Updated almost 6 years ago on . Most recent reply
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Opportunity ZONE HELP!!!!!
Hello,
I need some help understanding the new tax laws.
My client wants to sell his 5+ unit for $600K and buy a house w studio for his art business with proceeds. Right now he'd have to pay $120K in capital gains (20%). Of course he's looking at ways to avoid this. He doesn't want to do the 1031 exchange - he's cashing out and buying investing in his family. Though he did mention opp. zone. There are opp. zone, but before I start searching in those areas to buy, I'm confused or need clarification on the following:
1. can he sell a multi-family and buy residential/ mix-use in opp. zone to take advantage of opp. zone.
2. if he held onto for 10+ yrs, what capital gains would he have to pay?
Additionally, it's my understanding, there is a lot of uncertainity with this program, so the tax benefit shouldn't be the primary driver.
Any other comments would be appreciated!
Thanks!
- Jessica Kirkpatrick
Most Popular Reply
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Thank you for that. yes, i'm well aware i should never give out accounting/ financial advise and always disclaim/ preface - TALK TO A TAX/ FINANCIAL/ LAWYER; but if im going to cont to service my clients well... i should have an idea and i'd like to learn for myself!!! plus, this fact will determine his ultimate price range - $120K makes a big diff in what you can buy. you're an accountant so anything you can provide would be most useful. thanks again for the reminder.
- Jessica Kirkpatrick