All Forum Posts by: Matt Ward

Originally posted by @Lee Bell:

@Matt Ward

Leave it to the accountant to point out the turd in the punch bowl, LOL.

I see many newbies on BP investing in rust belt states without any concept of inflation adjusted returns. All they care about is cash on cash.

That’s not a prudent nor pragmatic way of investing.

I take no offense

@Daniel Rivera

If your investment value (appreciation) cannot keep up with inflation (3%) then the cash flow (cash is king or cash on cash only mentality) is not true, it is far less. It’s much safer to find markets where population is on the incline (even mildly) so that you can safely bet on appreciation at or above the rate of inflation.

I see many newbies on BP investing in rust belt states without any concept of inflation adjusted returns. All they care about is cash on cash.

That’s not a prudent nor pragmatic way of investing. However, it is just my opinion. Others will disagree.

@Hai G. DM me and I’ll give you a referal

@Account Closed do you have specific questions?  some concepts here are not difficult to grasp while others require some help from professionals.  There are already great tax pros on this thread to comment!  Best of luck!

@Lee Ripma @Adam Reynolds

Originally posted by @Tom V.:

Novogradac CPA (triple dub novoco dot com) seems to be the best source I have found for digging into the details.   They held a conference recently on the subject and you can pay $400 to listen to a rebroadcast.

Short version: spend as much on your rehab as the assessed value of the structure and you have yourself a qualified investment and safe place to roll your capital gains.  (Do you guys pay income tax to the state in Colorado? I believe you only avoid federal capital gains, not state taxes)  

Hold it for 10 years and pay no tax on the appreciation on your Opp Zone investment.  

 There are actually quite a few more rather significant details that have yet to be confirmed by the IRS or the Treasury Dept.  You did mention some of the key surface level attributes though, which is important to note.

Originally posted by @Austin Hendrickson:

@Matt Ward Our firm has a monthly meeting with leaders from different offices who are taking the lead with OZ's and we have clients that are doing deals in various zones. We work with mostly construction and real estate clients so have a ton of interest in QOZ's.

A lot of the questions you mentioned above are still valid, so on complex deals some of our clients are holding off until further guidance is issued/understood. 

 Yes, it seems our two firms have similar clientele.  Some calls from investors just seek to understand the cap gain treatment, which is easy enough, but when we have calls from the syndications and other funds, as well as developers, asking about the true structure, qualification, maintenance, and risk of the QOF's, the necessary questions are not answered as of yet.

Stay in touch!

@Austin Hendrickson Hey Austin, could you clarify what you mean when you say your firm is heavily involved in opportunity zones? We are getting tons of questions from clients, but most seem to be about the parts of the law which the new regs have still yet to clarify... original use and vacancy periods, 1031 into other zones properties within same fund, and the adjusted basis at the beginning of any 30 month period for substantial improvement thresholds... are just some frequent ones. Happy to hear your thoughts.

@April White honestly there are too many contradictions in your post that would lead me to believe you can handle your own taxes moving forward. Why do you need an Scorp when you already have an LLC? Is your LLC a disregarded entity? Are you a STR on Sch E or C (do you know the qualifications for each), do you know how to capitalize the work you did on your property prior to putting it into service? So much more. Get a professional. Best of luck.

@Allen S. Congrats you got people working on turkey day for you! Lots of great advice... get a new tax pro!