Hey all,
One of those first-time-last-minute-clients with the trickiest subjects (Opp Zone, in this case) arrives at your door....
Would appreciate your input regarding the following-
Using a simple example:
Gain from stocks sold $150K
Property purchased in OZ: $50K
From an article and IRS website I saw-
"Investor recognizes a capital gain.
Within 180 days, Investor invests an amount equal to the amount of gain Investor desires to be deferred in a QOF."
1. Per the above quote, does it mean that you have to buy the OZ property (and qualify for gain deferral on the stock sale), up to 180 days after the sale of stocks and realizing a gain or within a range of 180 days 'before and after' the sale?
2. My understanding from what I've read is that the gain that can be deferred here is up to the value of the property that was purchased (50K).
This client bought property for a lot less than the gain was. Am I right that his max gain to defer is 50K?
He might be eligible to gain-free of appreciation, if will hold the property10 years but I don't think he can exclude all the gain on the stocks now.
Many thanks for your input.