All Forum Posts by: Tanner Crawley

They can be, but many funds are structuring like hedge funds in an attempt to raise millions. You can actually self certify and do it as a sole proprietorship, partnership, LLC, etc. Pretty easy.

But you can only defer the gains through an Ozone if they are capital gains, so you'd have to hold the property for over a year.

@Shane Klackner
Welcome Shane! I'm working on some pretty niche investments in Colorado Springs. I live in South Denver but i'm down there quite a bit. PM me and we can meet up next time I'm down there.

@Raza Rizvi 
"If I opt out of 1031, all I need to invest in the Opportunity fund will be the gains. The initial downpayment etc. I can still cash out? Correct? Or am I missing something"

This is correct. You can reinvest only the capital gains portion into an opportunity fund. The OZ route makes a lot of sense, but as @Dave Foster said you should consider Recapture as well.

I also don't think Matthew mentioned this regarding OZones but you can only defer your original capital gain until December 2026 (Although the gain is reduced 15%). It is the gains made after the OZ investment that are tax exempt.

1031's are probably more powerful but really the best strategy is just to defer until you die and you can never really recognize the gain in a tax-friendly way. With Opportunity Zones you could have tax free gains until 2048. Then recognize the gain with zero taxes for portfolio rebalancing.

1031's will also likely be a bit more complicated with higher fees. Are you an accredited investor?

@Craig Tripp Hmm, Interesting topic. I'm not sure Craig, but i'm following this thread as well now. 

@Alex Porrett
How long have you owned it? Are you looking at ordinary income or capital gains tax?
You could roll it into an opportunity zone and defer the gains until 2026, there are other tax benefits as well. If you want to do another project like the one you did you could even be your own opportunity fund as you may meet all the requirements. What county is it in?

@Javier Beltran Welcome Javier,
Denver is definitely expensive but you can still find some decent assets if you know where to look. There are also other markets around Denver that aren't too far. Colorado Springs is about an hour south and is awesome for investment properties. If you really want cheaper properties or flip opportunities Pueblo is worth a look as well.

@Joe Szymczyk Hey Joe. You should look into Opportunity Zones. You can defer capital gains until 2026, and it reduces your taxes owed by 15%. You are also exempt from taxes going forward. You would only need to reinvest the actual capital gains portions and you could still liquidate the cost basis.

Hello, 
I have a partner and we are looking to form a partnership to buy a duplex. I am a bit confused as to how write-offs work within pass-through entities. Does each person write off interest and depreciation relative to their ownership%?  Is there any way to creatively structure it so that my partner (who is in a much higher tax bracket) can write off all of the interest and depreciation?
Thanks,
Tanner

I am interested in doing some Opportunity Zone Projects and am interested in the substantial improvements bit. How can you determine land value? I know % of assessed value is one way. Are there any alternatives? 

@Ashley Hodge Hi Ashley, I am an agent in South Denver but am knowledgeable in CO Springs as well. I used to do land acquisition for a developer in PHX so i have some experience finding of market deals. Pm me if you're interested.