ultra high net worth business is in the process of picking funds to offer its clients access to much ballyhooed Opportunity Zone investments.
Carol Schleif, deputy chief investment officer at Abbot Downing, tells FinancialAdvisorIQ the firm is “deep in due diligence,” evaluating fund managers who have real estate experience and intend to pitch Opportunity Zone targeted funds.
The opportunity zone play is garnering lots of interest from advisors to the wealthy for its tax management potential. By investing capital gains in an opportunity fund, investors can defer tax payments until 2027. If investors keep their money put, those deferred tax liabilities fall by 10% after five years and 15% after seven years.
If they keep their money in for at least 10 years, investors pay no tax on gains from the opportunity-zone investment itself.
Abbot Downing was created in 2012, when Wells combined Wells Fargo Family Wealth and Lowry Hill businesses into a $32.9 billion-asset business. Clients have average household wealth of $149 million in assets per household, Wells executives tell the publication.
Originally Published on December 24, 2018 at 03:25PM
Article published originally via “opportunity zone” – Google News https://www.barrons.com/articles/wells-fargo-preparing-to-offer-tax-lessening-funds-51545667601