![]() ![]() If you invest the $80,000 gain in a QOF within the required 180 days, the gain on the sale and the tax on the gain are postponed.Įxample:Say you had inherited vacant land several years ago. ![]() Thus, the total sales price was $100,000 with a capital gain of $80,000. You were very fortunate as t he stock had appreciated to $100 a share when you sold them. This includes the gain from the sale of all capital assets, such as stocks or bonds, property, rentals, land, and even partnership interests.Įxample: You sell 1,000 shares of stock that cost you $20 a share (a total cost of $20,000). The gains invested in a QOF are deferred until you cash out of the QOF investment or Dec 31, 2026. The best thing about this is that only the actual amount of gain needs to be invested into a QOF to avoid taxes on the gain for the sale year. This is a part of the tax reform put into place a couple of years ago. Individuals can now defer both short- and long-term capital gains into Qualified Opportunity Zone Funds (QOFs). Have you heard the recent good news? The IRS extended the opportunity to defer capital gains. ![]()
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