Sell stocks for syndication investment??

[James Archer]

Hello all.  Has anybody sold stocks to fund a syndication?  Are there any tricks or ways to do it without just completely eating the capital gains tax??  50k investment.  Thank you in advance!  

[Byron Valles]

Hi James, 

Here is a little more on why an opportunity zone could make sense. The tax benefits associated with investing in Opportunity Zones primarily revolve around three key advantages:

1. Capital Gains Tax Deferral: If you have capital gains from selling assets like stocks or property, you can reinvest those gains into an Opportunity Zone fund within a certain timeframe. By doing so, you can delay paying the capital gains taxes on those profits until a later date. It's akin to postponing the tax bill, giving you more immediate capital to work with.
2. Partial Reduction of Capital Gains Tax: If you keep your investment in the Opportunity Zone for at least five years, you become eligible for a 10% reduction in the deferred capital gains tax. If you hold onto the investment for at least seven years, this reduction increases to 15%. This incentive encourages longer-term commitment to the development of these areas.
3. Tax-Free Growth: The most attractive benefit is related to the investment's appreciation within the Opportunity Zone. If you hold the investment for at least ten years, any capital gains earned from the appreciation of the Opportunity Zone investment become tax-free. This means that any profit your investment generates over that time period won't be subject to capital gains tax when you sell or cash out.

I hope this helps. 

Byron