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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