Great Opportunities for Investors with the Opportunity Zone Tax Breaks…

There is great news for investors! Investments in Opportunity Zones are making BIG NEWS says Wall Street Journal. Everyone from Non Profits to Developers are making moves for the tax breaks that Opportunity Zones offer.

Governors of each state are allowed to designate up to 25% of their state’s low income areas as tax-favored opportunity zones where investors can invest. By doing so, they can defer Capital Gains taxes from investments (stocks, bonds & real estate). The hope is that by doing so, the economic energy placed in these areas will improve communities and offer more affordable and safe housing for citizens.

The benefit to investors is the possibility of TAX FREE capital gains. According to sources, if an investor holds the investment newly purchased Opportunity Zone for 10 years, your Capital Gains is erased.

Commonly, a 1031 Exchange allows an investor to defer for a time those gains, but this program is proposing NO CAPITAL GAINS for investment held full term.

To date, there are over 8700 Opportunity Zones across the country. To view an interactive map of Qualified Zones in California, click MAP

To qualify, an investor must make the investment up to 180 days from receiving those gains. Money can not be invested into a property directly and must invest 90% of their capital. Shareholders who keep their investments for five years will pay no taxes on 10% of their gains; at seven years they will pay no taxes on 15% of gains; and if they hold their investments for 10 years, they pay no taxes on their gains at all.

To learn more about this exciting new Tax Benefit and how it can help you, see Opportunity Zones Frequently Asked Questions

- Liz Jones
951.837.4750