(New York)

Goldman Sachs has a new kind of fund it is offering, and we thought advisors might like to hear about it. In what are being called “tax-eating” funds, Goldman is offering the opportunity to invest in “opportunity funds”. These special funds, which are provided for in the new tax code, are designed to promote investment in low-income communities. Interestingly, the funds are deferred from capital gains tax until 2026, so clients can move their capital gains into these funds and shield them from taxes. Doing so will ultimately result in a 15% reduction in capital gains taxes on the original gains, and 0% taxes for any gains on the opportunity funds themselves.

FINSUM: Goldman Sachs has been doing this kind of investing for years, and now the tax change has really put wind in its sails. Seems like it may be worth looking into.