Jay Frank, President of Cantor Fitzgerald Capital discusses real estate tax strategies for 2022 and weighs in on the differences and benefits of 1031s, Opportunity Zones, DSTs and 721s.
As a financial advisor, incorporating tax-efficient investment strategies into client portfolios not only enhances performance and long-term growth potential, but helps build deeper client relationships. Cantor Fitzgerald’s diversified suite of real assets solutions are designed to serve a variety of client goals and include: core real estate, 1031s/DSTs/721, opportunity zones and cash management. The Cantor team works directly with advisors as a resource for education and real estate tax planning.
The Qualified Opportunity Zone Program (QOZ), introduced as a part of the Tax Cuts and Jobs Act in December 2017, offers sizable tax benefits for any individual or entity investing in job creating actives in lower income communities across the United States. Frank discusses how the OZ landscape has evolved in the last four years and what factors advisors should consider when making recommendations for their clients.
QOZ investors enjoy three major tax benefits on their capital gain if held for the required minimum required hold period:
- Deferral of the original capital gain until December 31st, 2026.
- Elimination of any capital gain taxes on the new investment.
- Elimination of any depreciation recapture that would otherwise be owed upon sale.
Frank also weighs in on the core differences between 1031 exchanges, the Qualified Opportunity Zone Program and other options available to individuals selling investment real estate.
Cantor Fitzgerald is large global diversified investment manager, specializing in real assets and is an early adopter of the QOZ program. The 77-year-old firm and affiliates have completed over $300 billion in real assets transaction since 2019 alone. Cantor Fitzgerald’s real estate platform offers broad access to critical market data and research, enhanced ability for diligence and underwriting, and superior deal flow enabling the ability to deliver institutional quality real estate investments to investors.
To learn more on this topic, register and watch Cantor Fitzgerald’s presentation:
Private Markets Playbook: Real Assets
March 4th at 12pm ET
3 CFP / IWI / CFA CE credits