INVESTORS DO YOU KNOW ABOUT OPPORTUNITY ZONES?

Dated: September 6 2019

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opportunity zone

Are you a real estate investor? Are you interested in increasing your wealth by investing in real estate? Well no matter what your position is on the matter you must understand and know what Opportunity Zones are and how they help your pocket.

WHAT IS AN OPPORTUNITY ZONE? On December 22, 2017 the Tax Cuts and Jobs Act added the tax code, Opportunity Zones.  These are areas with economically distressed communities where investments MAY be eligible for tax savings. The state has designated these Opportunity Zones and have been certified by the Secretary of the U.S. Treasury. This has not been around for long, in fact they became available in April 2018.  Initially Opportunity Zones were available in only 18 states and today they are available in certain areas of ALL 50 states.

The idea behind Opportunity Zones is economic development in distressed communities, motivating investors to invest in areas/communities that need to be spruced up with new construction, rehabs, better living conditions.  This will create jobs in these communities and assist in increasing value for the area. Investors will be eligible to defer capital gain taxes when investing in a Qualified Opportunity Fund until the sale of that investment, of course there are conditions in place to this benefit.  If the investor holds the property for a minimum of 5 years they may benefit from a 10% savings on deferred gains, if they hold it for more than 7 years there’s a 15% savings on deferred gains and if investment is held over 10 years the investor is eligible for an increase to its fair market value on the date the investment is sold.

By the way, you may have an opportunity zone near you and not know it. I was surprised to see some pockets nearby.  You may already invest in an opportunity zone and not know it!!

Education is power and savings. Learn more about OPPORTUNITY ZONES here!

MAP OF OPPORTUNITY ZONES!  

Don’t forget to with your CPA regarding Opportunity Zones tax benefits.

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Beatriz Gonzalez-Leal

Happy to help you through your buying or selling process. Although it can be stressful and frustrating at times, having someone with experience helps incredibly. I've been in the industry over 15 year....

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Read More