Of the many changes that came from the Tax Cuts and Jobs Act (“The TCJA”), Qualified Opportunity Zones (“QOZ”) have been one of the most talked about provisions as the 2018 tax season progresses. As a recap, through QOZs, taxpayers may elect to temporarily defer the tax to be paid on capital gains until the 2026 tax year that are invested in a Qualified Opportunity Fund (“QOF”) within 180 days of gain recognition, the QOF must invest 90 percent of its capital in QOZ Property. Taxpayers who hold investments in a QOF for at least five years may exclude 10 percent of the original deferred gain, and investments held for more than seven years qualify for an additional five percent exclusion of their original deferred gain. In what could be the most attractive feature of the new law, after 10 years, post-acquisition appreciation is 100 percent excluded from taxable income for federal tax purposes. Many states are still evaluating how they are going to deal with the new QOZ rules.
Cassandra Baubie is an Associate at HBK CPAs & Consultants and is a member of its Tax Advisory Group (TAG). Cassandra joined HBK in 2017. She works in the firm’s Youngstown, Ohio, office after earning a dual Bachelor of Arts degree in legal studies and psychology from the State University of New York, The University at Buffalo and a Juris Doctorate from the University of Pittsburgh School of Law, where she also completed a tax law certification. She graduated from both schools with high honors.
Cassandra has experience in tax law research. Prior to joining HBK, she worked for Jurist.org, a global legal news organization, and was a member of the University of Pittsburgh Tax Law Review Journal. Cassandra also worked for the University of Pittsburgh School of Law’s Low Income Tax Clinic where she performed IRS litigation and tax court work and provided compliance work for low income individuals and businesses.
Anthony is a senior manager in HBK’s Stuart & West Palm Beach, Florida, offices. He began his accounting career in 2007 and joined HBK in 2011. He has extensive experience in the areas of taxation, tax planning, business consulting and financial reporting. Anthony provides accounting, tax and consulting, and transaction advisory services to individuals as well as a wide-range of industries, including construction, real estate, manufacturing, wholesale distribution, professional firms and non-profit organizations.
Along with servicing client accounts in HBK’s Southeast Florida region, Anthony also serves as a member of the Tax Specialists Group, which works in coordination with HBK’s Tax Advisory Group. Anthony also participates in speaking engagements for a variety of professional and civic organizations and groups within his community.