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Published in the August 2023 issue of Practical Tax Strategies, a Thomson Reuters journal, Michael Kelley discusses a dozen ways to enhance tax-efficient financial plans with Qualified Opportunity Funds. He illustrates the numerous strategies that can be used to defer or eliminate capital gains, leading to financial freedom and wealth.
Originally published in multiple Thomson Reuters’ journals, Michael Kelley describes a new wave of Qualified Opportunity Funds that offer shares of stock instead of the traditionally limited partnership interest. Investors and financial planners can enjoy the accessibility of stock ownership. Additionally, stock ownership allows investors to control their holding period. QOF’s tax incentives can now be tailored to maximize the benefits for each investor’s unique financial needs.
Irrevocable grantor trusts (IGTs) have long been used to pass down appreciating assets, such as family businesses or real estate, through generations. IGTs’ flaw are that it can make capital gains tax worse. Qualified Opportunity Funds can eliminate these capital gains taxes. It is a powerful pairing.
This article describes how changes in the tax law have taken away “like kind exchanges” for those with capital gains in collectibles (art, precious metals, etc.), but has also given collectors a powerful new tool in the form of Qualified Opportunity Funds.