ENGAGEMENT
BUSINESS TIPS
EasyAnswers TIPS FROM AN ATTORNEY TO PROTECT YOURSELF — AND YOUR INVESTMENTS
When it comes to your real estate investing business, asking questions is part of the job. Think Realty Resident Expert, financial advisor, and attorney Clint Coons offers his advice to questions he hears from clients every day.
Q: My CPA sent back my taxes and says I have a $30,000 capital gain to pay. In August 2019, I invested in a three-family investment property in New Bedford, Massachusetts, which is in a qualified opportunity zone. I sold a stock that I had held for over twenty years to partially finance this cash transaction. For over 20 years I dollar-cost-averaged $200 per month into this stock called Allete. My accountant reviewed 20 years of transactions and came up with a basis. Based on that, he came up with the $30K figure. Wouldn’t my purchase qualify for the capital gains deferral? Despite going back and forth with my accountant he says no. Although my taxes have been filed, I would like to amend my return if I can possibly take advantage of the tax deferral.
A: As long as youmade the investment into the opportunity zonewithin sixmonths fromthe date of the sale of the stock, then the gainwill be deferred. If this iswhat occurred, thenyou are correct andwill not have to report the gain onyour 2019 tax return.
Have a legal question that might affect your REI? Send questions to Think Realty’s editor at kwhite@thinkrealty.com.
28 | think realty magazine :: july 2020
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