Seeds for the seedy
Opportunity Zone
What? Where? When? How?
Opportunity Zones are an economic development tool that allows people to invest in distressed areas in the United States. Their purpose was to spur economic growth and job creation in low-income communities while providing tax benefits to investors. That was the intent. However, State Governors were left to decide where these zones would be located. Governor Ducey of Arizona designated 168 IRS Certified tracts. A handful are actually located in low income communities.
The map below tells their story:
ARIZONA OPPORTUNITY ZONES MAPPED
If the map below stalls out, simply click the HOUSE Icon on the left side and the map will reposition and refresh itself. Enjoy!
TAX FREE PROFITS
Opportunity Zones provide three primary tax benefits to investors who invest in the Opportunity Zones through the use of an “Opportunity Fund”. Don’t let that term scare you, it’s just an LLC entity set up as an S-Corp, as its own tax entity, which you create to Purchase Real Estate with. It’s much simpler than it sounds.
If you’re curious about Opportunity Zones and Opportunity Funds, then please call me and we’ll schedule a consultation. Some of the benefits of purchasing Real Estate with an Opportunity Fund include:
- Tax on income for capital gains is temporarily deferred for capital gains reinvested in an Opportunity Fund.
- Capital gains reinvested in an Opportunity Fund receive a stepped-up basis, which will effectively exclude up to 15 percent of the original gain from being taxed, EVER.
- Capital gains from the sale or exchange of an investment property in an Opportunity Fund are NOT TAXED, EVER, so long as the investment is held for at least ten years. Cha meet Ching!
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480.225.1901
