RECAP: 2018 FOX Fall Enterprise Forum

Tax Planning Strategies for Real Estate Owning Families

Presenter:
Tina Milligan, Managing Director, BMO Wealth Management – CTC | myCFO 
Patrick Moriarty, Partner, PwC

Session Description: 

Much has been written about the sweeping tax law changes as part of the 2017 Tax Cuts and Job Act. Ultra-wealthy taxpayers and business owners alike are faced with not only a myriad of changes, but also many planning opportunities. For real estate owners, investors, and developers, the impacts are significant. Experts covered the tax law changes and explored opportunities for targeted trust strategies that real estate owning families might consider.


"The Opportunity Zones program offers investors three incentives for putting their capital to work rebuilding economically distressed communities."
Key Takeaways: 
  1. Evaluate real property trade or business election
  2. Determine eligibility for the gross receipts exception and real property business exemption
  3. Restructure to maximize ability to utilize deductions
  4. Model tax implications of new expensing rules
  5. Revise policies/practices on acquisition
  6. The Opportunity Zones program offers investors three incentives for putting their capital to work rebuilding economically distressed communities:
    • A temporary deferral: An investor can defer capital gains taxes until 2026 by putting and keeping unrealized gains in an OZ Fund.'
    • A reduction: The original amount of capital gains on which an investor has to pay deferred taxes is reduced by 10% if the OZ Fund investment is held for 5 years and another 5% if held for 7 years.
    • An exemption: Any capital gains on investments made through the Opportunity Fund accrue tax-free as long as the investor holds them for at least 10 years.
       

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(FOX Members only)