Investar USA: Is There Opportunity in Opportunity Zones?

1. Friday, September 20, 2019
Investar USA: Is There Opportunity in Opportunity Zones?
Are you looking to take your real estate investing venture to another level? Or, are you simply
trying to get your real estate business on the map? It may be worth your while to look into the
opportunities that come with Opportunity Zones, which are capturing the attention of many
investors in United States today, according to Investar USA. Let’s take a look at what these zones
are and how you can take advantage of them.
The purpose of Qualified Opportunity Zones is to encourage investment, development and job
creation in economically distressed communities.
The Opportunity Zone designation is spelled out in the Tax Cuts and Jobs Act from 2017. Since
this law passed, you can find Opportunity Zones in all areas of the United States. In fact, there
are over 8,700 of these zones in America.
If you choose to invest in an opportunity zone, you must agree to follow the rules associated with
investing in these qualified zones. But don’t worry -- your willingness to comply with these rules
will yield some rewards. Specifically, you’ll be able to take advantage of major incentives related
to the capital gains tax both immediately and long term.
Whenever you divest real estate, you generally have to pay capital gains tax on your earnings.
However, if you divest a property in an opportunity zone and then place this capital gains in an
Opportunity Fund, you can reduce and defer your tax liability associated with that gain. In
addition, you don’t have to pay taxes on any appreciation you earn in the future through this fund.
Thanks to these incentives, you save money at tax time when you become an Opportunity Fund
investor. For this reason, investing in Opportunity Zones may be one of the smartest financial
moves you can make this year and in the years ahead.