Here we are, only a few weeks from 2021. Looking back at the events of 2020, we can likely all agree that this year sure has been “fun” … and it’s not over just yet.
It’s that time of year when many are starting their tax planning for next year and working to decrease their tax burden for the current year.
If Opportunity Zones, a part of the Trump administration’s tax reform package, are a part of your tax strategy, you may be happy to learn that it apparently may live on with the next administration.
Simply put, the program was designed to get money flowing into real estate and businesses located in areas in need of long term investment.
The benefit to investors is a significant decrease in tax obligations on capital gains earned on any type of investment in those areas.
For example, if you happened to have stock options with your rapidly growing company and want to get some of the money out of the unpredictable stock market, you can sell your options and invest in real estate in an Opportunity Zone.
If you follow the rules, you may have no tax obligation on the capital gain or the money earned on your investment.
However, many do not own stock options or have the means to invest in many of the funds out there investing in Opportunity Zones.
How can you participate?
Find an investment near an opportunity zone. While nothing is certain, the areas around opportunity zones are likely going to improve.
There are syndicators with deals in or near these zones looking for investors. Each will have specific criteria for the type of investors allowed and you, of course, have your own criteria for the type of return you are looking for and the change you are looking to make in the world.
If this is something you are interested in exploring further, it’s a good idea to know what to expect when searching for an opportunity that is right for you. To view a potential investment and how it may be presented to you, tap the image below or click here.
If you have any questions or would like to discuss this particular opportunity, please don’t hesitate to send an email or schedule a call. I would love to hear from you.
