Top 10 Takeaways: Taxes and Investments

November 4, 2021 General Membership Meeting


1. One of the best retirement plans for self employed persons (like REALTORS®) is the simple IRA.


2. Higher producing self employed REALTORS® should ask a financial advisor about the self employed pension IRA. (SEP IRA) This allows you to put away up to $58,000 or 25% net income.


3. The Center for Financial Wellness is a free tool provided to guide REALTOR® members on their financial roadmap. It is loaded with resources to help members at any stage of their career and can be accessed at financialwellness.REALTOR


4. One helpful tool available at is the monthly budget spreadsheet.


5. The Qualified Opportunity Zone (QOZ) program was created to boost low-income communities with needed investment. It also provides investors with significant tax incentives.


6. Eligible QOZ investors include individuals, C corporations, S corporations, partnerships, trusts, and estates.


7. Tax Incentives include:

  • Deferring capital gains taxes until December 31, 2026 or when the QOZ investment is sold.
  • A 5-year holding period increases the rolled-over capital gains basis by 10 percent.
  • A 7-year holding period increases the rolled-over capital gains basis by 15 percent.
  • A 10-year holding period allows investors to not be taxed on the gains from the eventual sale of the QOZ.
  • Depreciation is not recaptured.


8. Under the Tax Cuts and Jobs Act, Section 1031 now applies only to exchanges of real property and not to exchanges of personal or intangible property.


9. Traditional depreciation for Real Property is 39 years for commercial property and 27.5 years for residential rental property.


10. Health Insurance purchased by self employed persons, not from an employer, may be a tax deductible expense.