By Daniel Goodwin | Kiplinger
It is a well-known fact that the IRS is loath to extend tax deferrals and even more reluctant to eliminate taxes entirely. So when such tax breaks are available, it’s smart to take full advantage of them.
To that end, we’ve been talking a lot over the last several years about two such programs, one of which has existed for decades and has been revised multiple times, and the other which came into being with the bipartisan Tax Cuts and Jobs Act of 2017.
A 1031 exchange enables real estate investors to exchange one investment property for another, utilizing a series of rules and procedures that, when followed to the letter, defer or even eliminate capital gains taxes on the properties in question.
“1031 Exchanges, in relation to Opportunity Zones, are one of the many common questions Rose Law Group receives from investors and developers. There are times when it might be a good idea to 1031 into a qualified Opportunity Zone but only under certain circumstances. It is best to discuss with an attorney and your CPA.”
Tom Galvin, partner and director of Opportunity Zone Group at Rose Law Group