Qualified Opportunity Zones

[Lauryn Meadows]

Is anyone utilizing this for the 2018 tax year? I cashed out my 401k and my husband cashed out 50% of his annuity in April of 2018. We bought a mixed portfolio 8 units (bought 4 properties on same note) in May. Is this something we can utilize to defer the gains on our 401k and annuity cash out?

[Ashish Acharya]

Originally posted by @Lauryn Meadows:

Is anyone utilizing this for the 2018 tax year? I cashed out my 401k and my husband cashed out 50% of his annuity in April of 2018. We bought a mixed portfolio 8 units (bought 4 properties on same note) in May. Is this something we can utilize to defer the gains on our 401k and annuity cash out?

 The distribution from 401k and withdrawal of the annuity is not a capital gain, thus Qualified Opportunity Zones are not useful to defer/avoid taxes. 

There is no gain on 401k or annuity, both of them are ordinary income. Normal tax planning to offset W-2 applies to them. Your Rental portfolio should able to offset some depending on your income level.