tax investment zone?

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immisaki
Posts: 24
Joined: Thu Mar 28, 2019 10:38 am

tax investment zone?

Post by immisaki »

I have 60k of short term gains this yr and am in the 32% tax bracket. my tax advisor has suggested that I deply those gains to tax investment zone and defer the gains.
He has also offered to invest them for me.
I don't want to invest in smaller projects but like the idea of defering the gains.
Is there an ETF or a boglehead way to do this ?
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David Jay
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Location: Michigan

Re: tax investment zone?

Post by David Jay »

immisaki wrote: Tue Sep 15, 2020 7:24 pm He has also offered to invest them for me.
Of course he did...
Last edited by David Jay on Tue Sep 15, 2020 8:07 pm, edited 1 time in total.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius
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arcticpineapplecorp.
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Joined: Tue Mar 06, 2012 9:22 pm

Re: tax investment zone?

Post by arcticpineapplecorp. »

Urban Institute research finds that the designated zones have lower incomes, higher poverty rates, and higher unemployment rates than eligible nondesignated tracts. However, analysis shows minimal targeting of the program toward disinvested communities.

source: https://www.taxpolicycenter.org/briefin ... -they-work
didn't know what the term "disinvested" community meant, so I looked it up. Google says:
These residents may also suffer poorer health than those who live in areas with more access to resources. Disinvested areas broadly refers to both Economically Disconnected Areas (EDAs) and struggling commercial and industrial areas
how's that sound?

also, as if there isn't enough risk with the investment, if you for some reason decide to hand over $60,000 to your tax advisor, make sure your tax advisor puts the funds in a custodial account, i.e., doesn't hold them himself, a la Bernie Madoff style:
One of the warning signs of the Ponzi schemes conducted by Bernie Madoff and Stanford Financial was that both institutions self-custodied their assets. That is, the same institution was responsible both for managing the assets and for holding them.

source: https://www.bogleheads.org/wiki/Vanguard_safety
Last edited by arcticpineapplecorp. on Tue Sep 15, 2020 8:27 pm, edited 3 times in total.
It's "Stay" the course, not Stray the Course. Buy and Hold works. You should really try it sometime. get a plan: www.bogleheads.org/wiki/Investment_policy_statement
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David Jay
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Location: Michigan

Re: tax investment zone?

Post by David Jay »

What accreditation does this “tax advisor” have? EA? CPA?
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius
Topic Author
immisaki
Posts: 24
Joined: Thu Mar 28, 2019 10:38 am

Re: tax investment zone?

Post by immisaki »

Your questions seem to confirm my suspicions.
If there is no simple vehicle (like Vanguard) to invest in these funds, I would rather pay the 32% tax than lose peace of mind.

Thanks.
retiredjg
Posts: 41654
Joined: Thu Jan 10, 2008 12:56 pm

Re: tax investment zone?

Post by retiredjg »

Maybe you can tell us what you think "tax investment zone" means.
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