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Opportunity Zone Program
The Opportunity Zone Program can provide a big financial gain for investors through generous capital gains tax incentives. Since the Opportunity Zone program is so new (late 2017), relatively few investors are familiar with it.
The tax overhaul bill that was passed in late 2017 contained the Investing in Opportunity Act, which established the Opportunity Zone program consisting of Opportunity Zones and Funds. The program was created to revitalize economically distressed communities using private investments rather than taxpayer dollars. In exchange for investing in communities within Qualified Opportunity Zones, investors can access capital gains tax incentives both immediately and over the long term.
As an example, if you sell a piece of property and use the entire proceeds to invest in an Opportunity Zone Fund or a qualified Opportunity Zone Business, and you hold that investment for 10 years, 100% of your capital gains tax liability goes away.
Of course, you do need to use due diligence. Don’t make real estate investments based primarily on tax incentives or as tax avoidance strategy. The real estate investment needs to make sense, and any tax incentives should just be the icing on the cake.
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What exactly are Opportunity Zones?
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What are the benefits of Opportunity Zones?
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Where do I find Opportunity Zones?
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What do I need to do to start an Opportunity Zone Fund?
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How do Opportunity Zones compare to 1031 exchanges?
About Our Guest
Our guest this week is Steven Rinaldi, who has his own law firm in downtown Bethesda concentrating on business law and intellectual property matters. Prior to September 2005 he was a software licensing attorney for Mercury Interactive, was the associate general counsel of the American Bankers Association, and was responsible for all business agreements for a $30 million dollar a year division of the association. He handles all kinds of real estate related activities such as private placement, angel investment, venture capital, merges & acquisitions, technology issues, crowdfunding, and more.
Steven was a previous guest in Episode 132 and spoke about What You Need to Know About Investing in Real Estate Securities.
Want to find out more about the Opportunity Zone Program? You can contact Steven Rinaldi through email at stevendrinaldi@msn.com or by phone at (204) 481-2708. You can also check out his website here.
Each state’s economic authority has a list of Opportunity Zones. Click here to link to Florida’s Opportunity Zone Program as discussed in the podcast.
