The Big Opportunity for Investors in Opportunity Zones

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We’ve been talking a lot about Opportunity Zones and you will undoubtedly hear more about them going forward.  A new report by Yardi takes a look at the tax incentives for investing in the 8,700+ opportunity zones across the country that were created by the tax reform passed by Congress in 2017.  Yardi says there are roughly 1.9 million multifamily units, 960 million square feet of office space and 180 million square feet of self storage space that are either in place or under construction in these opportunity zones.  They say the “opportunity is enormous” as there is a huge incentive for real estate investors – especially in low-income areas.  Indeed…

“The heart of the program is an incentive to reinvest capital gains, which must be placed in a qualified “opportunity zone fund.” Funds can be single- purpose vehicles or commingled. Shareholders who keep their investments for five years will pay no taxes on 10 percent of the investment’s gains.  After seven years, 15% of the gains will not be taxed. Shareholders who hold opportunity zone investments for 10 years can avoid paying taxes on all gains. Among the qualified investments are real estate, businesses and infrastructure.”

Click here to download the report at Yardimatrix.com.

Click here for an interactive map of Opportunity Zones across America.

 

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Director of Education & Outreach, National Real Estate Investors Association

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