Sirote Shareholder and Executive Board Member, Brad Sklar, Speaks at ASCPA Event
Sirote attorney Brad Sklar presented “The Benefits of Investing in Opportunity Zones” last Friday at the Continuing Education Program for the Alabama Society of CPA's. The ASCPA hosted the event from 8:00 to 11:30 am in Montgomery, Alabama.
As Brad discussed in the presentation, opportunity zones present a tax planning opportunity that was passed as Subchapter Z of the Tax Cut and Job Act of 2017. The purpose of opportunity zones is to generate investment in low income and economically distressed areas by encouraging investors to re-invest their capital gains into these areas with incentives such as tax-savings and benefits.
If an investor makes a capital gain on their investment at the point of sale, under new rules, they can re-invest that gain into a Qualified Opportunity Fund (QOF). This gives the investor the potential of eliminating a portion of the former gain at year 5 and year 7 of the investment with the possibility of also eliminating the new zone investment gain after 10 years of investment.
Qualified Opportunity Zones in Alabama are included in every county in the State. There are currently 158 zones that were certified for Alabama by Governor Ivey and approved by the US Treasury in April of this year.
Also discussed were topics such as defining QOF stock, interest that can be earned off of QOF's, what a QOF business/business property is, and how QOF's affect you. To view the presentation in PowerPoint, click here.