All Forum Posts by: John Vietmeyer

Great post.  I just set up an opportunity zone fund for a purchase. Frustrates me that the 15% step up is impossible since is comes due in 2026 (6 years).  The deferment and 10% step up does help though.  

If you don’t like working with people, flip it and take the cash.  Personally, I’d rehab
and rent to at least one tenant.  This way you avoid short term capital gains, achieve some tax benefits and ideally see some appreciation. 

I’m hunting too.  Just got a duplex in midtown that needs lots of love.  Will let you know if I find one.  

Fingers crossed!

Do you have to have capital gains to take advantage of this benefit?  I’m thinking the tax break on the new property at 10 years would stand weather capital gains were used or not, right?  I know the other tests (90% invested in zone, invest the improvement value of property). would still apply. 

I’m in Charleston as well and just got a contract on my second property in Savannah.  I’m a little nervous about the amount of work I just signed up to rehab a 1920s duplex but It’s a great market and a great city for sure.  

BTW - Contractor and PM recommendations In Savannah are appreciated

Glad to here some of you have experience.  Not many do.  

Do I need to include anything special in the operating plan? Im going to set up a partnership LLC

I’m reading that the capital gains invested are only deferred until 2026.  Doesn’t that make it impossible to get the full 15% step-up in basis enabled at 7 years?  

I have a hard time selling as well, but If you qualify for the tax free distribution id go for it. Refinancing will cost you a few K and eliminate any cash flow you may currently be seeing.  

If you sell, you can then reinvest in whatever asset you believe will have the best return moving forward.  That could be Charleston real estate with a higher return than your current property or something else. 

Scout - this is great info.  Not many people  understand how to take advantage of this benefit. Could I pay you for a quick consultation? 

i have to close Jan 31st so i need to get moving quick 

The 90% rule (I.e. % invested in opportunity zone) will be easy since I'll be setting up a LLC specifically for this property. I guess I will also need to invest 100% of the purchase price into improvements?

I’m having a hard time finding folks with experience with these transactions.  Appreciate your input.