Brightscape Introduces Taxwise Method for Investors To Protect Portfolios Via New Opportunity Zone Investments

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Stock market at all-time high - People are reluctant to sell because of associated capital gains taxes - Utilize a feature of the 2017 Tax Cut and Jobs Act to achieve this.

We have developed a way for investors to use Opportunity Zone investments to defer capital gains without appreciably increasing their portfolio risk.

Prudent investors now are concerned about protecting their portfolios, with the stock market making new highs and real estate appreciation increasing. They would like to take profits and redeploy funds, but are hesitant because of associated taxes. If; however, an investor sells an appreciated asset and invests the gain in an Opportunity Zone the payment of the capital gains tax can be deferred, and the new investment can be completely free of any capital gains tax.

Opportunity Zone investments; however, are not diversified; they are also long-term and not liquid. Investors will want to offset these risks by ensuring the Opportunity Zone investment compliments their existing holdings. Therefore, the investor will need to invest in Opportunity Zone projects where the risk or source of the return is influenced by economic factors different from those that affect their current portfolio.

According to Eric J. Weiss, CFP® Brightscape’s CEO, “We have developed a way for investors to utilize Opportunity Zone investments to receive gains from the sale of appreciated assets and defer associated taxes without appreciably increasing the portfolio risk.”

Adds Scott Boyles, CFP®, COO, “Investors are now anxious to diversify their appreciated assets and are looking for a solution.”

More About Opportunity Zones
Opportunity Zones, created in the 2017 Tax Cut and Jobs Act, are census tracts where income is lower than the average of the area. Currently, 8,700 such census tracts have been designated as Opportunity Zones across the country.

Tax benefits

  • Deferral of the capital gain tax for up to eight years
  • Reduction in the capital gain tax by 15%
  • New investment free of any capital gains tax if held for ten years

Downsides

  • Investment is long-term
  • Investment is not liquid
  • Investments tend to be concentrated in one industry or business

Eligible investments

  • Real estate development
  • Opening new business
  • Acquire existing business and relocate it to an Opportunity Zone
  • Large expansion of business already in Opportunity Zone

Brightscape Investment Centers, Inc.
Brightscape is a fee-only investment advisor headquartered in Miami, FL with offices in Dallas, Virginia (DC suburbs) and Fort Collins, CO. Brightscape provides independent and objective advice to individuals and businesses in a totally transparent fashion. More info is at http://www.brightscape.com.

Address: 6910 North Kendall Drive, Miami, FL 33156
Telephone: 888-888-0967
Email: info(at)brightscape(dot)com.

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Eric Weiss
Brightscape
+1 (305) 233-6222
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