All Forum Posts by: Tanner Crawley

@Stuart Crowell
ADU's are awesome! Here are some companies that are really involved in the space here in Denver. They have been helpful for all of my adu related questions.

https://youradu.com/
https://ldconstructiondenver.com/
http://studiobvio.com/

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Originally posted by @Jason Hsiao:

You can also invest fresh capital as well and get the complete tax exemption after year 10. You just don't get the step up in basis at year 5 and 7 you would if you re-invested capital gains from elsewhere.

@Bryan Mills

Can you confirm this? I have heard otherwise. Can ordinary income recieve the 10 year tax exemption?

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@Derek Hanners
I love opportunity zones but I don't think it is appropriate for your situation. You will be able to defer the gain on your property and reap some other benefits, but ultimately the gain will come due at the end of 2026.

Ozone investments are more applicable to capital gains from non real estate assets in which there is no 1031 option. Or maybe you are looking to transition from your RE investment into private equity (Ozones can be business investments as well). If you are simply reinvesting into real estate a 1031 provides stronger tax benefits.

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@Diane Tycangco
Denver can be tough, you might want to look into tertiary markets nearby. Colorado Springs and Fort Collins have several cash flowing properties. They also have positive market outlooks going forward. I especially like Colorado Springs.

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Originally posted by @Katrina Razavi:

Hey @Tanner Crawley thanks for answering all these great questions! You seem to really know your stuff. One more thing to clarify-- I was under the impression that so long as the fund holds onto a property for at least 10 yrs if they sell it after that they're not taxed on the appreciation of that property. When you say the deferral that comes due in 2026, that's in regards to the cap gains deferral on the sale of your stock (assuming that's the asset you're liquidating to start the fund), right?

Finally, I've had a hard time figuring out addresses based on census tract numbers that are QOZ designated areas. Do you know of any sources for this?

Would love to connect if you specialize in locating properties that are QOZ areas. Colorado is a great market and I have family that lives there. Thanks!

Correct. The 2026 deadline is on the initial capital gain. Any gains made after the oz investment can be entirely tax exempt so long as they are held 10+ years. There are some good resources for identifying which properties are within zones. I’ll send some over tomorrow. I’d love to connect and help you find a good OZ investment here in CO!

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Originally posted by @Katrina Razavi:

Finally, I've had a hard time figuring out addresses based on census tract numbers that are QOZ designated areas. Do you know of any sources for this?

Would love to connect if you specialize in locating properties that are QOZ areas. Colorado is a great market and I have family that lives there. Thanks!

Correct. The 2026 deadline is on the initial capital gain. Any gains made after the oz investment can be entirely tax exempt so long as they are held 10+ years. There are some good resources for identifying which properties are within zones. I’ll send some over tomorrow! I’d love to connect and help you find a good OZ investment here in CO.

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Originally posted by @Justin Leffew:

Originally posted by @Tanner Crawley:

@Justin Leffew
It cannot be a financial services company. Owning and operating real estate will not qualify.

There is a difference between the real estate and the business provisions for opportunity zones. Operating real estate doesn’t classify as a business. So you would have to hold assets within the zone and meet substantial improvements.

Maybe if they were short term rentals of some other more active business model you might get away with it. Definitely talk to an attorney.

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@Justin Leffew
It cannot be a financial services company. Owning and operating real estate will not qualify.

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Originally posted by @Natalie Kolodij:

Originally posted by @Angela Rhoton:

I have been doing my own research on this subject and haven't found the clear answer or at least one I like. I have a call into a friend who is a Tax Atty/CPA as well but thought I would throw it out to the community.

I have a rental property that is in an Opportunity Zone. All of the houses around my property have been torn down and new construction going up and I am considering the same. I know the new construction would meet the 'substantial improvement' criteria of investing in an opportunity zone. I have found a few comments that the Opportunity Zone Fund I set up (LLC) could would have to purchase the property from me and then I can only have a 20% stake in the OZF. Does anyone else have more clarity on that? It seems the govt doesn't want the me to benefit from further investment in the area but only others. Would love any thoughts on the subject.

Thanks

Angela

You can't exchange into your own property. So unfortunately already owning a property in a QOZ offers you no benefit. You could sell it and purchase a new property in a QOZ to tear down and build new.

Check your inbox! I'd love to chat sometime.

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All Forum Posts by: Tanner Crawley

Tanner Crawley has started 4 posts and replied 131 times.

Post: First Time Investor Seeking Suggestions

Post: Building an ADU in Denver

Post: Opportunity Zones Benefits

Post: Adviser for upcoming RE transaction

Post: Is 1% rule still possible in Denver? I can't even find cashflow!

Post: Opportunity fund & zones. New 2017 tax law

Post: Opportunity fund & zones. New 2017 tax law

Post: Opportunity Zone Real Estate Fund

Post: Opportunity Zone Real Estate Fund

Post: Own Opportunity Zone Property