Question on capital gains taxes

[Joel McKinney]

Hello BP People, 

Quick question here. I am looking to invest some funds into an apartment rehab syndication. I've done a quite a bit of research and all looks like it's on the up and up.  I would like to sell stock to fund this but don't want to get hit with the capital gains taxes if I can avoid it. 

Is investing as a limited partner in a syndication deal something you can use a 1031 or something similar to purchasing a home with the sale of stock? Other option would be to cash out a Roth IRA and roll funds into the project. Just not sure if either of these options helps avoid a big tax hit. Any advice would be greatly appreciated.

[Lee Ripma]

@Joel McKinney

This is exactly what an Opportunity Zone fund is for! You get the greatest benefit you get in before the end of the year however it’s still good if you go in after the new year.

When you're selling stocks there is no way out of capital gains that I know of (although maybe someone else on here does) besides an opportunity zone fund. When you're selling RE you can 1031 exchange. You usually can't go into a syndication unless they will let you TIC in and be on the title. You can sell RE and go into an opportunity zone fund.

I’m sure others will chime in who are following opportunity zone funds...