Tax Smart Real Estate Investors Podcast

204. Maximizing Returns with QOZ Funds: Insights from Expert Investor Barrett Linburg

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Jan 10, 2023
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INSIGHT

QOZ Tax Benefits Explained

  • Investing capital gains in QOZ Funds defers taxes until 2027 and offers a step-up in basis after 10 years.
  • The step-up wipes out depreciation recapture, making QOZ Funds highly tax-advantaged real estate investments.
ANECDOTE

Early Adoption Leads to Embracing QOZs

  • Barrett and his partner entered the QOZ space after finding it gave extra yield cushions for tough deals.
  • Their CPA and attorney were early adopters, and understanding QOZ led them to fully embrace the strategy.
ADVICE

Manage QOZ Illiquidity with Refinances

  • Investors receive large refinance distributions within 3-5 years while holding for 10 years.
  • This approach provides liquidity earlier, easing the long 10-year holding period challenge.
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