Analyzing Cryptocurrency Taxes, The Investing In Opportunity Act And Economic Zone Investment
Economic Development Zones And Crypto Tax
President Trump’s 2017 tax cut features a section on how real estate and other taxable assets will be treated under the tax provisions. The section, known as Investing in Opportunity Act and Opportunity Zone Investment Program, may enable investors to defer and eliminate their future capital gains in what are called Qualified Opportunity Funds and Qualified Opportunity Zones.
Opportunity zones are land parcels in low-income areas that have been designated for investment opportunity and favorable capital gains treatment. The investment vehicle for investing in these areas is the Qualified Opportunity Fund and the maximum benefit is realized by holding monies in the zone or property for ten years.
Bitcoin advocate Charlie Shrem tweeted about the program, asking whether “anyone looked at putting Bitcoin into “Qualified Opportunity Zones” in the USA. I don’t see much written about it, but I like the concept. Crypto capital gains into these properties and have a much lower tax for 10+ years.”
Jomari Peterson seems to be an advocate of the approach and is starting a new program called Gama Ventures, an investment fund for revenue sharing and micro-equity investments in commercial development and more. He stated,
“The repatriation of crypto funds from overseas offers a unique investment strategy for those looking to mitigate their tax liability while developing and maintain their long term wealth. They can make a meaningful impact by putting their money to work in a productive way in communities of need.”
Disclaimer: This content is not investment advice.