We recently had a frustrating call from an investor with a $2 million long-term capital gain from this spring. His goal is to have absolutely $0 tax. If this recent gain were timed differently, an opportunity zone (OZ) investment might be perfect. 4 months sooner or 2 months later and an OZ might be just the ticket. Unfortunately, April of 2026 won’t work.
He heard an idea from a TikTok video that sounded sketchy to us, and requires an 2026 475 election. But it is too late for the 2026 sole proprietor mark-to-market (MTM) election. Even the OZ 2026 transition program isn’t acceptable. Under the available OZ program, you pay the current taxes and get the following 10 years appreciation/profit tax free. That sounds good, if you can find a good OZ qualified investment, but not good enough. We are talking about hundreds of thousands of dollars in taxes, which is worth some planning.
Far too often, failure to plan is planning to fail. Please make a plan rather than search for a solution after everything is locked in. Schedule your free consultation and let us help you make a plan.