Kelly Erb from Forbes is writing her annual “Taxes from A to Z” article and just arrived at the letter R, which she has dedicated to Real Estate Investment Trust (REIT) issues. Interesting discussion about the Tax Cuts and Jobs Act implications related to REIT operations and investments.
Good news for REIT investors, the IRS clarified rules that allow a 20% deduction off the income received via REIT investments from overall taxable income of eligible investors.
In Alabama we have 158 qualified opportunity zones, with at least one in each of our 67 counties. Do you know where they are in your state? Long and short of the tax implications: Invest capital gains from any source into an opportunity zone and hold for 10 years to defer taxes on the capital gain for that hold period and then only get taxed on 85% of the gain. Further, pay zero taxes on any money generated from the investment over the 10 year hold period. Pretty compelling, don’t you think?