California Opportunity Zone Investments To Help with Capital Gains Taxes

You have capital gains taxes that are due this year. They could be minor or a major hit to your bank accounts. How does the federal government help with tax deferment in the case of capital gains? Opportunity Zone investing in low-income neighborhood cities is one of the best ways to help with your tax burdens out of capital gains. Under the federally established Tax Cuts and Job Act of 2017 investors can postpone capital gains payments if they invest long term in opportunity zones. This is the expertise of Scott Withrow of Got Capital Gains.

There are 11 opportunity zones in California, including some that are contiguous with Silicon Valley. These are win / win situations. You benefit with reduced or deferred tax payments, and the neighborhoods receive much-needed investment funds. Investors can delay paying capital gains taxes (or reduce the total) if they invest long-term in opportunity zones. The opportunity zones include one very desirable downtown area. It is one of the best zones in California, and in the U.S. actually. The intention of these opportunity zones, which are located in low-income areas, is to redevelop properties that, in turn, create jobs and housing expansion.

Payment of capital gains taxes on investments into opportunity funds are delayed for 10 years. A discount of 15% on those taxes is applied after seven years (10% after five years). The bigger payoff is that any income generated by the opportunity fund over the life of the investment is not taxed at all. Anybody with capital gains to declare in 2021 should be talking to Scott Withrow about the options they have in California OZ investing.

Anyone with capital gains from stock, business or property can invest in these types of funds.

Scott Withrow of GotCapitalGains expects to announce in coming months more opportunity fund sites in California. Investors in GotCapitalGains are part of a multi-asset qualified opportunity zone fund, which means investments are diversified over multiple properties and projects. "The more money raised, the more projects we can invest in downtown," Withrow said. "We are geographically singular, but we are diverse in our properties and product types." GotCapitalGains hopes to produce four or five medium-size multi-tenant office buildings for small- and medium-size businesses, one or two student housing projects, co-living concepts, assisted living / memory care buildings, existing building repositions and a few industrial R&D projects, Withrow said.

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