CPAs are always on the lookout for new tax-saving avenues that they can share with their clients. The new kid on the block is the qualified opportunity zone. In this article, we are going to explain what CPAs should know about qualified opportunity zones.
How Qualified Opportunity Zones Work
Qualified opportunity zones are a recent tax tool that allow investors to defer capital gains taxes when selling property. The catch is that you have to reinvest your capital from the sale into a “qualified opportunity zone” as defined by the governor of the state in which you are investing the funds. The important thing to remember here is that these taxes will come due on December 31, 2026.
1031 Exchange is Often a Better Option
Compared to the new qualified opportunity zones, 1031 exchanges are often a more tax-efficient option. The biggest difference between a qualified opportunity zone and a 1031 exchange is that there is no set date at which all capital gains taxes become due.
With a 1031 exchange you can defer your gains indefinitely by continuing to exchange into bigger and better properties – thus keeping your money hard at work for you as time goes by.
Get Help with Your Real Estate Exchange
If you’re looking for help with your 1031 exchange, you’ve come to the right place! Commercial Partners Exchange Company offers a full range of 1031 exchange services. Our qualified intermediaries can take the reigns of your exchange and ensure that everything goes off without issue. We’ll make sure you are fully prepared for the closing table. Contact us today to set up a time to chat with one of our 1031 exchange professionals about your real estate exchange. You can find us at our offices located in downtown Minneapolis.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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