by ConvergeCPA | Feb 5, 2021 | QO Zone Policy, tax savings for investors
Exhibit 1. Comparison of After-Tax Accumulations with Equal Before-Tax Rates of Return, Four-Year Holding Period Exhibit 2. Comparison of After-Tax Accumulations with Different Before-Tax Rates of Return, Four-Year Holding Period Exhibit 3. Comparison of After-Tax...
by ConvergeCPA | Feb 5, 2021 | QO Zone Policy, tax savings for investors
The QO Zone policy has the potential to create significant tax savings for investors in QO Funds and much needed capital investments to low-income urban and rural areas. If this policy is successful, QO Zones can possibly motivate significant economic development and...
by ConvergeCPA | Feb 5, 2021 | QO Zone Policy, tax savings for investors
While QO Funds have the potential to create significant tax savings for investors, they are not the best option for every investor. The following examples illustrate some of the factors to consider before recommending these investments to clients. The first factor to...
by ConvergeCPA | Feb 5, 2021 | QO Zone Policy, tax savings for investors
If a taxpayer realized a $200,000 gain from a taxable sale or exchange, the QO Zone policy allows the taxpayer to avoid a current year tax on the gain by investing it in a QO Zone Fund. As no income is recognized from the rolled-over gain, the taxpayer would receive a...
by ConvergeCPA | Feb 5, 2021 | QO Zone Policy, tax savings for investors
Section 1400Z-2 describes the benefits for taxpayers who invest in a QO Zone. To receive the benefits, a taxpayer must invest in a Qualified Opportunity Fund (QO Fund). A QO Fund is any investment vehicle organized as a corporation or a partnership for the purpose of...
by ConvergeCPA | Feb 5, 2021 | QO Zone Policy, tax savings for investors
The QO Zone policy relies on collaboration between state governments and private investors. State governors are responsible for identifying the areas of greatest need within their jurisdictions, and private investors are responsible for creating funds that will...
