If you have made substantial capital gains from investing in cryptocurrency and would like to defer, minimize and offset some of your tax bill, investing in real estate in Opportunity Zones is a strong risk-adjusted option.
Investing your gains into an Opportunity Zone fund does 3 things:
1) It defers your capital gains tax payment to 2026
2) It gives you a 10% step-up in basis so instead of having to pay tax on $1m, for instance, you now only pay tax on $900,000
3) If you hold your investment in an Opportunity Zone fund for 10 years, any profits you make in that fund are entirely tax free so if you put in $1m and make $3m in the fund, the difference of $2m is tax free
For more information, you can read Wells Fargo's explanation of the legislation here:
https://www.wellsfargo.com/the-private-bank/insights/planning/wpu-qualified-opportunity-zones/If you are interested in investing in an Opportunity Zone fund or just want to learn more, feel free to reach out to
investor-relations@ptmpartners.comHappy investing!
