All Forum Posts by: Karen Lee

@Karen Lee I am a little unsure what you mean by retroactively saving but here is my high level explanation and a helpful link. The timeline to reinvest the proceeds from the sale of real property (and other personal property and capital assets in the case of QOZs) is 180 days which is the same for both 1031s and QOZs. There are a few key differences - one is that QOZs only require to defer the actual gain whereas with 1031s you must put all the net proceeds of the relinquished property into the exchange to get full deferral. With QOZs you don’t have much control since the sponsor of the fund makes all key decision so you have to do your due diligence. Some QOZ funds involve a single asset and some involve many and are geographically diverse. The QOZ might eventually be taxable (say in 2027 for the 2026 tax year) when the TCJA sunsets or the investment might not be taxable if held for long enough. In any event it’s probably not something that you can defer until death like with a 1031 exchange. So basically there are pros and cons to both depending on someone’s situation. Here is a link from the IRS website -

https://www.irs.gov/credits-de...

So if you are looking to sell either option might be appropriate and be helpful but you should weigh the pros and cons and work with your CPA in advance.

Thank you Matt. Your reply has given me A LOT to think about. I'm diving in now. Thank you.

0 Votes

Boston, Massachusetts

Quote from @Nathan Grabau:

My understanding is that you cannot, but it should improve your properties marketability if you so chose to sell!

Hi Nathan,

thanks for the reply. I'm actually a KW agent in Mass and New Hampshire. And you're right, it does improve marketability!

0 Votes

Boston, Massachusetts

Quote from @Matt Giacinto:

It won't impact your capital gains for the sale; However, I'd recommend speaking to a CPA since they could help go over your cost segregation and depreciation as well. The fact that it's an opportunity zone will improve its marketability like @Nathan Grabau said. If you'd like, I'm a commercial agent in LA and can connect you with a CPA

Thank you Matt. I'm actually an agent in Mass and New Hampshire and my accountant is based in Los Angeles. My accountant thought I might 1031 it in the same neighborhood and then sell but isn't the wait like 10 years for that?

0 Votes

Boston, Massachusetts

I purchased a multi family in Los Angeles CA in 2013. The area was declared an opportunity zone in 2017. Now I'm wondering how I can take advantage of the capital gains savings retroactively if I sell. Any advice?

1 Vote

Boston, Massachusetts

I bought a multi family back in 2013 in what is now an opportunity zone in LA. I'm considering selling now but wondering how or if I can take advantage of the opp zone reduction on cap gains.

0 Votes

Los Angeles County, California

Thank you George. Can you tell me what you mean by an "in-kind" distribution in option 2? If you mean I could sell it off, which taxes are you referring to that would be required? Capital gains?

1 Vote

A few years ago, I went self-directed on my IRA and purchased investment property with it. So far so good. But, what can I expect when I reach retirement age? Will the IRS want to review my records, purchase history, rents, bank account? What is the process like for exiting this situation?

1 Vote

@Account Closed thanks for pointing that out!!

1 Vote

Thanks to @Robert Leonard, @Dmitry Fomenchenko, @Jeff Astor, @Jaime Raskulinecz for all of your words of wisdom. I am happy to report that I am now in process with Vantage IRA to set up my self directed IRA as well as a local attorney in Boston, Alan Segal, to set up my LLC. I worked it out over the past three days and everything should fall into place by my close date. I will keep you all updated and many thanks again!

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I have put an offer in to purchase a condo and it has been accepted. This was 12 hours ago. I realized my mistake and asked my realtor to place "Karen Lee or nominee" on the purchase and sale agreement and he agreed to do so. I do have my personal check for the earnest money but I hope I can wash it all out as things progress. I asked to close on Dec 1 to give myself time to set this up. What I need is a referral to an attorney to set up my LLC. Does anyone have suggestions for me?

0 Votes

All Forum Posts by: Karen Lee

Karen Lee has started 6 posts and replied 26 times.

Post: Property lands in Opportunity Zone AFTER purchase

Post: Property lands in Opportunity Zone AFTER purchase

Post: Property lands in Opportunity Zone AFTER purchase

Post: Property lands in Opportunity Zone AFTER purchase

Post: Too late to take advantage of the L.A. opportunity zone?

Post: Exit Strategy for IRA Owned Property?

Post: Exit Strategy for IRA Owned Property?

Post: Recommendations for a tax attorney to set up an LLC for a self directed IRA?

Post: Recommendations for a tax attorney to set up an LLC for a self directed IRA?

Post: Recommendations for a tax attorney to set up an LLC for a self directed IRA?