Opportunity is Knocking – Are You Listening?
Capital gains tax – nobody likes paying it.
However, with the passage of the Tax Cuts and Jobs Act (TCJA) of 2017, there is now a very tangible opportunity to defer, reduce, and to some degree, eliminate having to pay federal capital gains tax on the sale of an asset that has grown in value. How? By investing in an investment vehicle known as a Qualified Opportunity Zone Fund.
Twelve percent (8,762, to be exact) of U.S. census tracts have been designated as Qualified Opportunity Zones (QOZs) by the Department of the Treasury, and there are a plethora of QOZ funds that have been created to invest in them.
Not surprisingly, there are a host of economic considerations and risks that investors need to be acutely aware of when evaluating an investment in a QOZ fund. However, if you are holding a stock, bond, mutual fund, or piece of real estate primarily because you are looking to avoid paying the capital gains taxes associated with selling it, we believe exploring QOZs, and the funds that invest in them, would be a worthwhile investment of time for you.
At Towerpoint Wealth, we recognize the potential financial benefits, and understand the recent attention and momentum that QOZs have garnered over the past year, and have helped a number of qualified clients and prospective clients (in conjunction with their tax advisors) more closely evaluate the merits of Qualified Opportunity Zone investing. To further highlight and share our expertise in this burgeoning area, we just last week published a new white paper (Opportunity Knocks) that discusses this tremendous opportunity. We encourage you to call or email us to discuss in greater detail how QOZ investing may complement your current financial and investment plan and strategy.
The Towerpoint Wealth family had a great time last week setting up an ice cream social for patients at the local Shriners Hospital for Children – Northern California. It was great putting a smile on the kids’ faces with some fresh vanilla, chocolate, and strawberry ice cream from the best ice cream joint in Sacramento, Gunther’s Ice Cream!
In addition to sharing ice cream and investment opportunities, we thought we we’d share a number of trending and notable events that have occurred over the past two weeks:
- Amazon Prime Day 2019
- Roger Federer loses to Novak Djokovic in an epic Wimbledon finals match
- The “Storm Area 51” movement continues to develop
- Massive blackout in New York City
- Labor Secretary Alex Acosta resigns
- A potentially deadly heat wave continues across Canada and 2/3 of the United States
- President Trump’s tweets about four liberal Congresswomen spark outrage
- Wealthy financier Jeffrey Epstein denied bail as he awaits his sex trafficking trial
Lastly, please take three or four minutes to review the curated content found below, highlighted by:
- Opportunity Knocks, our newly-published white paper on Qualified Opportunity Zones
- A snippet highlighting the ESG / socially responsible investing workshop we hosted last Wednesday at the John Natsoulas Gallery in Davis
- Charity Miles – a great app to help raise money for charities while you walk, bike, or run!
As always, we encourage you to reach out to us (firstname.lastname@example.org) with any questions, concerns, or needs you may have. The world continues to be an extremely complicated place, we are here for you, and look forward to connecting with, helping, and being a direct, fully independent, and objective expert financial resource for you.