Let’s Talk About: Opportunity Zones

Use common sense. It always wins.

This has been the trade de jour for those sitting on capital gains and in my view it is a disaster waiting to happen. We’ve been invested in low income housing for the last 10 years and I’ve had more anxiety over these investments than anything else

Opportunity Zones were created by the tax legislation that lets you roll your capital gains into these “zones” with the caveat in order to receive the tax benefit you have to stay invested for 10 years.

We’ve had low income housing issues where extremely inept managers control the property (obviously we didn’t know that at the time we purchased the bonds). It’s an industry ripe with incompetence and I suspect this will carry through to the operators of many opportunity zone projects.

In my view pay the tax and do something smarter that you control rather than risking all the gain by giving it to someone you have no clue as to their track record, the demographics of the area you’re investing in and the long long lockup.

Call us if you have any questions at 561-847-3596, for anything related to financial planning, investment management, or special needs trusts.

Use common sense. It always wins.

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