Defer $150k capital gain via Qualified Opportunity Zone?
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
comments
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?