Before You Sell: The Capital Gains Move to Know

Summary

Brett Rentmeester joins Maggie Lake to explain Opportunity Zones and the updated 2027 rules, focusing on how investors with large capital gains can defer taxes and potentially earn tax-free appreciation. The discussion covers the 180-day rollover window, five-year deferral, 10% basis step-up, depreciation benefits, and the 10-year holding requirement. Rentmeester emphasizes that the underlying investment must still make sense and warns that many tax-driven funds may be bad deals.

• Opportunity Zones began in 2018 and are being updated into a perpetual program starting in 2027.
• Qualifying investments, often real estate, can provide tax-free appreciation after at least 10 years.
• Capital gains rolled into Opportunity Zones can be deferred for up to five years and receive a 10% basis step-up.
• Depreciation benefits in qualifying real estate may not need to be recaptured.
• Rural Opportunity Zone development is receiving expanded attention and extra benefits.
• The speaker warns that tax benefits only improve an already good underlying investment and many tax-motivated funds may be risky.
• Gains realized in fall 2026 already qualify for rollover into the 2027 Opportunity Zone program.