Qualified Opportunity Zone Fund

[Darryl S.]

Looking for some information on Qualified Opportunity Zone Funds. Has anyone used one to "store" some excess capital gains to defer Taxes?  Some background I am retired and sold down some of my highly appreciated rental business assets in early 2024 and I will have around 1/2 Mill Capital gains for 2024 taxes. I am NOT interested in owning any more real estate (retired here man) so I had planned on just paying my 15% long term Capital Gains tax rate and moving on to my "safe money" retirement program of MYGA's / CD's and High yield Savings account / Bonds / some Stocks. However there is this really REALLY Nasty IRS Rule called AMT that has me looking for a way to spread this gain over a few years. Is a Qualified Opportunity Zone Fund just an investment fund like buying mutual funds etc?  If so maybe I can buy into it and pull the money out annually to stretch the capital gains over a few years? If anyone has done this successfully please let me know. Not a lot of info on the internet about these that I can find at this time... Tks D

[Darryl S.]

Good info, it sounds like I will need to be careful to segregate the Depreciation recapture which would probably be classified as "ordinary income"  I have an inquiry out to the Belpointe PREP OZ fund to get all the details.  Would be super simple if it is set up like a stock where you can buy in and sell off as needed to effectively spread the gain over a period of tax years. Since I am retired and have been able to par my normal taxable annual income down to a bare minimum it might be possible to use a small portion of the capital gains in future tax years at Zero tax rate or at least at a very desirable low rate. The key seems to be not letting this current tax rate issue push me into making a rash Risky investment that could end up costing more than simply paying the excessive taxes now!