We break down what Trump Accounts really offer (and where they fall short), and then dive into how developers, business owners, and investors can tap into tax credits tied to low-income housing, new markets, and opportunity zones.
3 Key Takeaways
Trump Accounts Are Limited in Value: While they allow $5,000 in annual contributions and offer $1,000 from the government, they lack the flexibility and tax benefits of 529 plans or Roth IRAs.
Low-Income Housing Tax Credits Encourage Long-Term Development: Developers maintaining affordable housing in distressed areas can receive substantial tax credits, often spread over 30 years.
New Markets and Opportunity Zones Offer Strategic Incentives: Investors can claim up to 39% in tax credits over seven years for capital invested in qualified distressed communities—beyond just real estate.
Episode Timeline & Highlights
[0:00] – Introduction to today’s focus: Trump Accounts and community investment incentives
[1:12] – What are Trump Accounts, and how do they work?
[2:29] – Who qualifies, contribution limits, and tax treatment
[3:25] – Distribution rules, early withdrawal penalties, and qualified uses
[4:16] – Why 529 plans may still be the better option
[5:08] – Community investment credits: clean energy phase-out and private investment focus
[6:08] – Low-Income Housing Tax Credit explained
[7:15] – New Markets Tax Credit: how to apply and what you get
[8:34] – Opportunity Zones and real-world data from Chicago and Northwest Indiana
[9:56] – Final thoughts and preview of next episode
Links & Resources
IRS Qualified Opportunity Zones: https://www.irs.gov/credits-deductions/opportunity-zones
Low-Income Housing Tax Credit Overview: https://www.huduser.gov/portal/datasets/lihtc.html
New Markets Tax Credit Program: https://www.cdfifund.gov/programs-training/Programs/new-markets-tax-credit/Pages/default.aspx
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