A flood of new funds are rising up to help investors take advantage of the new tax breaks, but hedge fund-like fees, risky projects and a lack of oversight could lead your client down a black hole.
The opportunity zone tax benefit has received a lot of attention. The program, born out of the Trump administration’s tax overhaul, lets investors defer and reduce capital gains taxes in exchange for investing the money in designated low-income neighborhood development projects. No doubt some clients are asking advisors about it, and there has been a proliferation of investment funds launched to accommodate the demand.
But experts say while the incentives have the potential to be a great deal for all involved, clients need to be aware there is no guarantee their investment will work out as planned, nor any certainty they’ll help the distressed communities they are targeting....
RSK: One of the better explanations of an OZ.
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- - Volume: 7 - WEEK: 16 Date: 4/16/2019 7:02:44 AM -