Defer $150k capital gain via Qualified Opportunity Zone?

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RDdy13

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RDdy13
Jan 9, 2021 7 Comments

I am planning to sell some TSLA shares that would generate a long-term capital gain of $150k. I heard about some Qualified Opportunity Zone funds where money gets locked for 10yr and a discount of 15% is applied on the capital gain tax. Additionally, the growth on that $150k investment is tax free. There are funds like those for San Jose downtown. I heard that some funds gave 10-12% annual return historically. If anybody has experience, would you please share it? Is it recommended to defer tax like this?

I was thinking about The Peal Fund or Urban Catalyst San Jose.

Another option would be to pay tax now and then invest freely and again pay tax on capital gain.

Household Income: $800k

#investments #personalfinance

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TOP 7 Comments
  • 10-12% is the typical SP500 return while it's probably rare among oppportunity zone funds? So you likely wont end up with 10-12%.
    Jan 9, 2021 2
    • Google
      RDdy13

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      RDdy13
      OP
      Note that all return is tax free, which would not be the case if the capital gain is invested in S&P.
      Jan 11, 2021
    • Google
      RDdy13

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      RDdy13
      OP
      I heard that San Jose and Oakland Downtown OZ are good from the investment perspective. I couldn't find their historical performance, so would be great to know if someone has experience..
      Jan 11, 2021
  • New
    zKye70

    New

    zKye70
    I am also interested in knowing this. I need to unload lots of capital gain!

    Op, I assume the provision you are talking about is for the future capital gain and not for a previous capital gain,. Is that right?
    Jan 10, 2021 1
  • New
    zgzgzgzg

    New

    zgzgzgzg
    It's all about how good thendsveloper managing the fund is. I've seen some pretty jenky opportunity zone presentations
    Jan 9, 2021 0
  • New
    yCfo87

    New

    yCfo87
    OP, did you do it?
    Apr 28, 2021 0