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@DallasAptGP urges putting real estate into the Opportunity Zone tax structure to…

Brief

DallasAptGP recommends moving real estate into Opportunity Zone structures to eliminate taxable gain concerns, bluntly calling it “No tax.” StripMallGuy (@realEstateTrent) argues for post-tax net worth accounting, giving examples — treating a $1M property gain as $700k after capital gains and warning that unrealized $2M stock gains overstate financial standing if taxes aren’t considered.

Why it matters

@DallasAptGP urges putting real estate into the Opportunity Zone tax structure to “avoid this debate entirely,” claiming “No tax” as the benefit.

Key details

  • StripMallGuy (@realEstateTrent) says he calculates net worth in post-tax dollars: a $1M property gain is treated as ~$700k after capital gains, and a $2M stock gain should be discounted for taxes to avoid an inflated net worth.
Source evidence

Get your real estate into the Opportunity Zone tax structure and avoid this debate entirely

No tax

StripMallGuy (@realEstateTrent)

I don't think most people are totally honest with themselves when it comes to calculating net worth.

I've always calculated it in terms of post-tax dollars. If a property's worth $1M more than what I paid for it, I deduct the capital gains, and only recognize, say $700k of the $1M.

I think if your stock portfolio is up $2M, recognizing it at the market value, without accounting for the tax loss, is lying to yourself - and lots of folks walk around with a deeply inflated sense of their financial standing.

What am I missing?

— https://nitter.net/realEstateTrent/status/2085002788879126561#m