Opportunity Zones Program

Opportunity Zones Program

Alex BekezaBusiness Member
Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes

I just read an interesting article about the "Opportunity Zones Program".  I'm interested to see if anyone here on BP is already engaged with it and what there experience has been so far as well as their goals and expectations.

Established by the Tax Cut and Jobs Act, the Opportunity Zone program aims to give investors an incentive to put money into an Opportunity Fund that then invests in low-income neighborhoods, according to the census, as designated by the governor of each state. In exchange, part of an investor's investment in the Opportunity Fund would be forgiven with the rest subject to a tax that varies depending on the length of the investment.

The Opportunity Zones tax incentive was included in the Tax Cuts and Jobs Act President Donald Trump signed into law in December. But the idea stems from a 2015 white paper from the Economic Innovation Group, a D.C.-based think tank that is now working closely with states to help implement the program.

Is anyone participating in this program yet?

How is it going and what are your expectations and goals???

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Member since 2018 · 5 posts · 2 votes
7y

An existing rental would not qualify for multiple reasons. 1) It has to be in a qualified fund, and 2) the property needs to be substantially improved. There’s a lot more that goes into these funds that I haven’t looked into yet, but I will once I’m off vacation. 

Brandon Hall has written some good and informative articles on these funds. I’d recommend going to read some of his work on LinkedIn. 

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  • Realtor · West Michigan · Member since 2017 · 105 posts · 53 votes
    8y
    @Alex Bekeza - I am interested in this program as well, but I can’t seem to find any info on it other than they anticipated releasing more information on it this Fall...
  • Member since 2018 · 26 posts · 8 votes
    7y
    @Alex Bekeza I just ran across something one of my agent send to me about something they will be going in our city. So does it mean that anybody who choose to put their funds in to this program will get these incentives? Still trying to understand how it works.
  • Investor · Fremont, CA · Member since 2017 · 13 posts · 3 votes
    7y

    For a noob like me where can I go and look for these QOF?

    What if my existing rental fall under a designated OZ?

  • Member since 2018 · 5 posts · 2 votes
    7y

    An existing rental would not qualify for multiple reasons. 1) It has to be in a qualified fund, and 2) the property needs to be substantially improved. There’s a lot more that goes into these funds that I haven’t looked into yet, but I will once I’m off vacation. 

    Brandon Hall has written some good and informative articles on these funds. I’d recommend going to read some of his work on LinkedIn. 

  • Real Estate Agent · South/Central Florida · Member since 2018 · 13 posts · 3 votes
    7y

    Heres the only part that got me interested:

    "Capital gains placed in a certified opportunity zone fund will not be taxed through the end of 2026 or when the investment is sold, whichever comes first."

    And @Jahbari McLennan yes basically anyone can do this. The titles they use are: "individuals, corporations, businesses, REITs, and estates and trusts".

  • Property Manager · Columbus, OH · Member since 2017 · 123 posts · 76 votes
    7y

    I've been heavily involved in the OZ program and think it'll help inject capital into the areas that need it most. You have to have capital gains that you are looking to avoid/defer paying in order to benefit from the program. So this really isn't a beneficial program for the normal REI. If, however, you have a portfolio or large multi-unit you are looking to sell then this would be a great program for you to get into.

    Please DM me if you would like further details. 

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