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coorslite21

Savings with New Tax Code

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We all pay taxes........but, wouldn't it be great if you could create some tax savings for yourself......even eliminate it all together.....

 

I'm not a Tax professional.......this post isn't intended as advice......

 

This is simply a concept you might look into with your CPA or other tax proffessional........

 

You will find it in the latest tax code revisions that Trump signed into law late last year year.....(link below)

 

This could be of benefit if you have taxable gains from selling a house, Inheritance, Stock profits, Crypto gains, lump sum pension payments.......and any other taxable events that might take a chunk out of your payment..........who knows........perhaps even IQD depending on how they tax it....if they tax it...

 

You will find the specifics in the tax code listed under "Opportunity Zones"  ....it is around page 360 0f the 1000 page document...

 

Here is a short summary of how it works....

 

You can invest your gains into Opportunity Zones and defer paying taxes on those original gains until 2026. 

Then, if you hold the new investment long enough, you can get up to a 15% discount on the taxes you pay from the initial asset you sold. 
 
But here’s the best part… 

 

Any capital gains from your investments in Opportunity Zones are TAX FREE if you hold them for at least 10 years. 

 

1. You sell your asset, and realize an initial capital gain

 

2. Within 180 days, you invest some or all of your gains into an Opportunity Zone Fund.

 

3. You defer paying tax on the initial capital gain until Dec 31, 2026. And even then, you get a 15% discount on that tax

 

4. The Opportunity Zone Fund invests in an Opportunity Zone (it can buy an existing business, start a new business or even buy real estate)

 

5. If you hold that investment for 10 years, any capital gains you earn from the opportunity zone fund are TAX FREE 

 

There are opportunity zones in all 50 states (from areas like Detroit to Manhattan). And the entire island of Puerto Rico is also an opportunity zone.

 

Some States and Cities started programs like this years ago.......Detroit Michigan of late has used this business model and it works.......people who have invested early are seeing a positive appreciation on the investment, as well as all of the tax benefits......

 

It's almost like the USG adopted that plan........and has expanded on it....

 

If you invest in these areas, you get incredible tax benefits.

 

You get to defer paying capital gains tax on your previous investment for SEVEN YEARS (you can also get a discount on those taxes).

 

And any gains you make from your opportunity zone investment are tax free… FOREVER.

 

One last quick summary:

 

Opportunity Zones can reduce your taxes in three ways…

 

1. You can defer paying capital gains on your original investment (normally 23.8%) for nearly a decade.

 

2. You can get a 15% discount on that tax when you pay it down the road.

 

3. You pay ZERO tax on any capital gains from your opportunity zone investment.

 

The second and third points are clear enough. But I want to take a moment to explain the importance of deferring taxes. 

 

For years, the wealthy and big businesses have used "tax deferral" as a means to safely and consistently increase their wealth.

 

 

You've may have taken advantage of tax deferral, too, in your IRA or 401(k) when you contributed pre-tax money.  

 

Tax deferral is simply delaying the payment of taxes until some point in the future. But by delaying taxes, your money can compound at a substantially higher rate.  

 

That’s the reason real estate investors will roll over their profits into new real estate opportunities (called a 1031). 

 

That’s also the reason companies like Apple were holding hundreds of billions of dollars outside the US – they wanted to delay paying taxes for as long as possible… allowing them to invest the full amount in things like new businesses and buying back shares. 

 

Research this further if you want.....totally legal.......perhaps a gift from Trump to help all of us keep a little more of what is truely ours.....

 

Links:       https://www.congress.gov/bill/115th-congress/house-bill/1/text/eh

 

https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions

 

https://home.treasury.gov/news/press-releases/sm0341

 

Do your research.......get together with your own Professional................CL

 

BTW/FYI........this is the kind of info that you find in the VIP section........VIP isn't dinar on steriods.....more about business acumen......quite a library of info has been amassed........new material from time to time........Just my thoughts.........CL
 

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