Simply Tax Episode 41

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Created under the Tax Cuts and Jobs Act (TCJA) to spur economic development and job creation in distressed communities, qualified opportunity (QO) zones provide investors with the opportunity to defer and reduce the recognition of gains that are reinvested into a QO fund within 180 days. Additionally, gains related to the appreciation on a QO fund investment can be permanently excluded after a 10 year holding period. Guest Derek Smith sits down with host Damien Martin to break down how QO zones work and explain the tax planning opportunity. 

TIME STAMPS OF WHAT’S COVERED

  • Overview of QO zones & QO funds @ 02:18
  • "There's a lot that we still don’t know" @ 08:08
  • The tax planning opportunity @ 11:01
  • Are we talking about deferral of more than just capital gains? @ 14:40
  • Investments must be qualified @ 16:36
  • Who’s investing in QO zones & why? @ 20:02
  • The opportunity can be flexible and broad @26:15
  • Common areas of confusion and traps for the unwary @ 29:02
  • Planning with uncertainty @ 32:29
  • Zones identified @ 34:40
  • Closing thoughts on existing property, effect on valuations & more @ 37:00

BIO FOR GUEST

Derek SmithDerek Smith is a member of BKD National Construction & Real Estate Group. With technical expertise in partnerships, Derek is a firmwide resource on partnership-related issues and works with individuals and closely held businesses to develop and implement business structures and tax savings strategies. Derek also is a board member for the Ozark Mountain Family YMCA and serves as board treasurer for Missouri Preservation, a not-for-profit organization that promotes historic preservation and rehabilitation.

Connect with Derek on LinkedIn

ADDITIONAL RESOURCES

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