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Opportunity Zone Investing?

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  • Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 4782
    Joined: 01/12/2016

    I think that ‘reduce your CGT to zero’ angle is a great sales pitch. So good that it even has Hatton interested !

    Someone should attach a hefty sales fee to financial planners to ship this in volume soon.

    Click to expand…

    Yes it is a good pitch.  I find myself “stuck” with a couple of American Funds that I bought in my 30s that have LTCGs around 850-900k.  I do not reinvest any dividends but these gains have become very large due to compounding.  I have donated some of them.  The 10 year illiquidity would be ok.  I tend to be skeptical of things that sound to good to be true and newer alternative investments.  I will read up on these.  Thanks for the links.

    Click to expand…

    May have a chance to TLH a good portion of those this year?

    #172059 Reply
    hatton1 hatton1 
    Participant
    Status: Physician
    Posts: 2655
    Joined: 01/11/2016

    I think that ‘reduce your CGT to zero’ angle is a great sales pitch. So good that it even has Hatton interested !

    Someone should attach a hefty sales fee to financial planners to ship this in volume soon.

    Click to expand…

    Yes it is a good pitch.  I find myself “stuck” with a couple of American Funds that I bought in my 30s that have LTCGs around 850-900k.  I do not reinvest any dividends but these gains have become very large due to compounding.  I have donated some of them.  The 10 year illiquidity would be ok.  I tend to be skeptical of things that sound to good to be true and newer alternative investments.  I will read up on these.  Thanks for the links.

    Click to expand…

    May have a chance to TLH a good portion of those this year?

    Click to expand…

    No if you own shares for years you will never have a tax loss.  I am talking about stuff purchased in 1989-1997.

    #172160 Reply
     Dont_know_mind 
    Participant
    Status: Physician
    Posts: 576
    Joined: 11/21/2017

    I think that ‘reduce your CGT to zero’ angle is a great sales pitch. So good that it even has Hatton interested !

    Someone should attach a hefty sales fee to financial planners to ship this in volume soon.

    Click to expand…

    Yes it is a good pitch.  I find myself “stuck” with a couple of American Funds that I bought in my 30s that have LTCGs around 850-900k.  I do not reinvest any dividends but these gains have become very large due to compounding.  I have donated some of them.  The 10 year illiquidity would be ok.  I tend to be skeptical of things that sound to good to be true and newer alternative investments.  I will read up on these.  Thanks for the links.

    Click to expand…

    May have a chance to TLH a good portion of those this year?

    Click to expand…

    No if you own shares for years you will never have a tax loss.  I am talking about stuff purchased in 1989-1997.

    Click to expand…

    It’s a funny thing, if I could get a CGT exemption on selling further property I would convert it to shares. They should just get rid of CGT, allow for more free movement of capital and make everyone happy !

    #172161 Reply
    hatton1 hatton1 
    Participant
    Status: Physician
    Posts: 2655
    Joined: 01/11/2016
    Earnest refinancing bonus

    I think that ‘reduce your CGT to zero’ angle is a great sales pitch. So good that it even has Hatton interested !

    Someone should attach a hefty sales fee to financial planners to ship this in volume soon.

    Click to expand…

    Yes it is a good pitch.  I find myself “stuck” with a couple of American Funds that I bought in my 30s that have LTCGs around 850-900k.  I do not reinvest any dividends but these gains have become very large due to compounding.  I have donated some of them.  The 10 year illiquidity would be ok.  I tend to be skeptical of things that sound to good to be true and newer alternative investments.  I will read up on these.  Thanks for the links.

    Click to expand…

    May have a chance to TLH a good portion of those this year?

    Click to expand…

    No if you own shares for years you will never have a tax loss.  I am talking about stuff purchased in 1989-1997.

    Click to expand…

    It’s a funny thing, if I could get a CGT exemption on selling further property I would convert it to shares. They should just get rid of CGT, allow for more free movement of capital and make everyone happy !

    Click to expand…

    I resent capital gains taxes because I have already been taxed on this money.  I know this tax makes people hold investments that they should sell to avoid the tax.  I am guilty of this in 2001.

    #172170 Reply
     WCInovice 
    Participant
    Status: Physician
    Posts: 34
    Joined: 12/17/2017

    I have room in my IPS for more real estate and cash to deploy, but don’t really have significant capital gains (only about $20K) to write off if I do a QOZ fund like Origin.

     

    I’m thinking with that little in capital gains my money may be better deployed into another real estate deal (like 37th parallel multi family) or Broadmark Lending FUnd (though very tax inefficient).

     

    Any thoughts about QOZ without significant capital gains to contribute?

    #174494 Reply
     Tim 
    Participant
    Status: Accountant
    Posts: 600
    Joined: 09/18/2018

    @hatton1,
    “I resent capital gains taxes because I have already been taxed on this money.”

    If you pause, I hope you can recognize how you emotions are overshadowing your common sense and brain that you have been blessed with.

    The symptom is taxes, cause is gains. You NEVER pay tax twice on this money. You earned it! Buy a stock, it’s a savings account. Buy at $100 and sell at $500, Your $100 you paid is tax protected. Just the $400 gain is subject to tax. On top of that, taxes are lower too!

    So you resent getting permanent tax protect on your $100 investment, better rates than earned income, the ability to control when you pay, and on top of that you made 4 times what you invested.
    Paying capital gains is a good thing, you made money on your investment, got it back, and paid lesser taxes than if earned. And that is a bad thing to resent?

    I resent taxes period but accept them benefit to society.
    But capital gains taxes are the sweets or candy, gimme more! I’ll pay those any day. Those are the good times.

    #174500 Reply

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