2A — December 2023 — M id A tlantic Real Estate Journal
www.marej.com
M id A tlantic Real Estate Journal
M id A tlantic R eal E state J ournal Publisher, Conference Producer ..............Linda Christman VP, Conference Producer .............................Lea Christman Editor/Graphic Artist ......................................Karen Vachon Contributing Columnists ..Dwight Kay, Kay Properties and Investments Mid Atlantic R eal E state J ournal ~ Published Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 117 HMS Halsted Dr., Hingham, MA 02043 USPS #22-358 | Vol. 35, Issue 12 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Phone: 781-740-2900 www.marej.com
Dwight Kay
4 Reasons Why Investors Should Consider QOZF for Tax Advantages and Potential Returns
Q
ualified Opportunity Zone Funds (QOZF) have become an in-
tegral part of the investment landscape in recent years for those investors seeking to defer capital gains taxes on the sale of appreciated assets. At Kay Properties, our team has helped many accredited investors nationwide understand and participate in Qualified Oppor - tunity Zone Fund investments. Qualified Opportunity Zone Funds were implemented by the Tax Cuts and Jobs Act of 2017, and were designed to increase economic growth and development in lower income neighborhoods and commu- nities. According to Indiana University’s Kelly School of Business1, there are more than 8,700 QOZs in the country, including in territories like Puerto Rico. The bottom line is that QOZs are a part of a What is a Qualified Opportunity Zone?
social program with the intent of redeveloping impoverished districts throughout the coun- try by driving private capital to underserved communities and Americans by offering tax incentives to investors. By investing in these zones, indi- vidual investors and corpora- tions can receive tax incentives and deferrals. But what are some specif- ic reasons investors should consider Qualified Oppor - tunity Zone Funds for tax advantages and return po - tential? 1. Significant Tax Advan - tages Available to Opportu - nity Zone Fund investors: Deferred Capital Gains Taxes: Investors can defer
taxes on any prior capital gains (these could be from the sale of real estate, stocks, a business, artwork, etc.) by investing in a Qualified Opportunity Fund (a fund set up specifically for in - vesting in Opportunity Zones). These taxes can be deferred up until the date the investment is sold or until December 31, 2026, whichever comes first. Step-Up in Basis: If the Qualified Opportunity Zone Fund investment is held for longer than 5 years, there’s a 10% exclusion of the deferred gain. If held for more than 7 years, this exclusion increases to 15%. But the real attraction of this investment strategy is that If the QOZF investment continued on page 18A
Firmly Rooted in the Law and in the Community We are well grounded in every facet of real estate law, from acquisition to construction. We are committed to serving the needs of our clients and our communities.
Contact: NEIL A. STEIN • nstein@kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-941-2469 • kaplaw.com Other Offices: • Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120 Kaplin Stewart Attorneys at Law
Made with FlippingBook Digital Publishing Software