September Opportunity Zones (September 5th)

The new tax law created Opportunity Zones. Basically, it allows one to roll capital gains from anything (real estate, stocks, etc.) into an Opportunity Zone Fund (aka an LLC that meets certain requirements) and defer the gain plus get a “step up” in basis. Interestingly, only the gain needs to be rolled, not the entire sales price of the sold assets. The opportunities are twofold: Sell your own assets and defer/step-up gain or set up an Opportunity Zone Fund and attract invest for qualifying (we’ll discuss that) low income properties.

Blocker Corporations & Shared Appreciation Mortgages to Reduce UBIT aka “How to Run a Business Through a 401k, ROBS Discussion Included (September 19)

When you run a “continuous” trade/business through an IRA or 401k, you pay a high tax known as UBIT. Ditto when you borrow, with certain exceptions for 401k’s. There are ways to reduce or eliminate this tax. We’ll discuss how one client now runs half of his flips a Roth 401k-owned Blocker company. He dropped his tax rate from 37% to 21% AND is dumping six figures per year into his Roth 401k where it will not be taxed again for 2 generations. This is what Romney did with his SEP in the Caymans. We will also discuss Shared Appreciation Mortgages as an alternative to deal where your IRA partners and generates UBIT (e.g. – JV’s on flips as the money partner). We will also address ROBS: Rollover Business Start-Ups.

Important Changes to the HUGE 20% “Pass-Thru Deduction”: The Newly Issued Regulations in English (October 3^rd)

Section 199A aka the “Pass Thru Deduction” is probably the most small-business friendly tax code provision ever enacted. Business owners can write off up to 20% of the net income from each business. For example, if you have a “business” (definitions matter, not every for-profit activity rises to the level of a “business” – we’ll discuss) that generates $100k of net income, you’d get a $20k write-off. Recent regulations both clarified and altered this important law.

The (Rarely Heard) Truth about Series LLC’s, Upsides and Downsides (October 17^th)

Series LLC’s are sold as:

• Providing superior asset protection to REI
• Simpler to run than regular LLC’s
• Good for use out of state (e.g. – use DE Series in your state!)

It’s hard to get good information on these because most people who know about them from a technical standpoint are also trying to sell them to you, so they have an incentive to be rather optimistic, to put it politely. I am not trying to sell you series llc’s and will provide a far more objective overview than you’ve heard elsewhere.

More Topics To Be Announced

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