Ushered into the tax code under the 2017 Tax Cuts and Jobs Act, Qualified Opportunity Zone Funds (“QOF”) provide investors with an incredibly compelling combination of tax benefits for those with realized capital gains. This unique combination of benefits may help to generate tax, financial planning and investment alpha in a singular solution. While the tax tail should never wag the dog, it is critical for a financial professional to understand how the combination of QOF benefits, when applied appropriately, can be a significant differentiator for high-net-worth (“HNW”) clients as a holistic solution. Three Questions To Consider Assuming one likes the underlying investment and believes it is a suitable part of a diversified portfolio, one should consider the following: 1. When facing a capital gains tax liability, is it valuable to defer recognition of all or part of that gain until December 31, 2026, and therefore provide time to put strategies in place to proactively plan for and minimize it? 2. When thinking about how to reinvest that realized capital gain, is it attractive to allocate all or part of that capital to a structure that may have the opportunity to grow free of future taxation? 3. When thinking […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
