As Dallas continues to grow its economy with help from last year’s tax bill, Dallas News sought insights from Jackson Walker’s Tax leader Brian Dethrow about qualifying investments in lower-income areas.
“We think qualified opportunity zones are the next big things. Nobody’s heard of them, but these rules may change the face of our cities,” Brian said.
Through tax breaks made available by the 2017 Tax Cuts and Jobs Act, investors can sell appreciated assets, invest the gain in geographically designated qualified opportunity zones, and receive tax benefits as a result. Investors can roll over capital gains into a QOZ business or funds and defer federal taxes on that gain. In 2026, 85 percent of the rollover gains will be recognized, and 15 percent generally will be tax-free.
Tax Benefits of Qualified Opportunity Zones
Last year’s tax bill created an incredible opportunity for tax-free investment. Get insights from Brian Dethrow on the three pieces of the tax benefit »
The rules will create everything from new entertainment hotspots and office complexes to multi-family and retail projects. Billions may wind up being invested into revitalizing areas. Almost all of downtown Houston, major parts of East Austin, key parts of San Antonio adjoining downtown, and transitioning parts of Dallas—Deep Ellum, the Cedars, and Trinity Groves—are included.
As Chair of the Tax practice, Brian and our attorneys have handled a number of deals involving qualified opportunity zones and are skilled at handling tax matters at the most complex level.
For more information, read Dallas News’ “Remember the Trump tax cut? Here’s how it might benefit low-income areas in Dallas.”
Brian Dethrow focuses on tax and business planning for complex corporate, partnership, family, and inter-generational transactions. Clients who count on Brian for their transactional and tax planning include sophisticated businesses – Fortune 500 to large family-controlled – and wealthy families. His broad experience with innovative tax and corporate planning, particularly involving the energy industry, spans M&A and partnership work, international tax, private equity funds, bankruptcy and insolvency tax planning, net operating loss preservation, workouts, business succession, asset protection, and gift and estate tax reduction strategies. In his practice, Brian has also worked with ultra-wealthy families on FLPs, charitable remainder and lead trusts, and family foundations. Brian has been recognized by The Best Lawyers in America for his work in tax law and has been listed among D Magazine‘s “Best Lawyers in Dallas” list since 2009.