Opportunity Zones ?

Buying & Selling Real Estate
7yFollow

Opportunity Zones ?

Jill Curran
Real Estate Agent · Little Rock, AR · Member since 2018 · 38 posts · 6 votes

Newbie here. I'm looking at a duplex as my first investment property, and after hearing about Opportunity Zones, I see that it's in one. I'm trying to understand what this means when it comes time to sell. OZ's look kind of 1031's but without the need to buy another property. Maybe that's way off in a way I'm not seeing, since I'm new to REI. Also, I heard you have to put into the property as much as the sale price, but I can't find that anywhere to verify. Anyone know the scoop on OZ properties?

Thank you all for your help educating me!

2Reply
105 views

Most Popular Reply

Tommy Carey
Real Estate Agent · Los Angeles, CA · Member since 2018 · 15 posts · 19 votes
7y

Has anyone considered investing in properties in proximity to developments in or near the OZs?  If these properties have the requirement of being improved 100% in 30 months, your investment will also see, in theory,  a concurrent benefit right?  I've been picking up land listings in these areas near places that I've seen larger funds and institutions purchase property and businesses in anticipation of this benefit.  

7Reply
See this reply in the discussion

32 Replies

Jump to latestLatest
  • Account Closed
    Member since 2019 · 42 posts · 33 votes
    6y
    John Hyre has an awesome free Opportunity Zone webinar here https://www.taxreductionlawyer...
    0Reply
  • Patricio Dotras
    Member since 2018 · 2 posts · 0 votes
    6y

    Does anyone know about interstate Qualified Opportunity Zone investment and the tax treatment? I sold a property in Arkansas for a gain in 2019 and reinvested the gain in a property in Florida in 2019 (less than 6 months after). Does anyone know if I still have to pay Arkansas state capital gains or i can also defer them, as I will do with federal capital gains? I tried calling the Dept of Finance and Administration in Arkansas, but they do not have any information about this. Does anyone knows how it works when the reinvestment is in another state? Thank you very much 

    0Reply
  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    6y
    Originally posted by @Viki Van Arsdale:

    ISO answers from  CPA/Tax Attorney or anyone that can help me validate if my opportunity zone is set up correctly. My questions -

    I created the LLC as a C Corp (QO-Fund) with my husband who is my partner

    I created a Corporation C-Corp (QO-Business). 

    The Corporation is member managing the LLC

    For optimal taxation, could and should the LLC be an S Corp?
    Should the Corporation be an S Corp?

    I will be a small mom and pop investor using my own assets.

     This is an Entity and Tax question? I would like to check and balance the Entity, and understand the structure for the best tax benefit in the set up of the Entity. 
     

    C-Corps can be beneficial to set up in certain situations, however, I am not sure if they would belong in your structure.

    [email protected]917-280-8544
    Basit Siddiqi CPA4.979 Reviews
    View Page
    0Reply
  • Derick Robinson
    Member since 2018 · 7 posts · 2 votes
    5y

    @Eric Brunner so in this example you would still have to pay tax on 700k+ 10 years later?

    0Reply
  • Account Closed
    Real Estate Agent · Los Angeles, CA · Member since 2021 · 32 posts · 12 votes
    4y

    Hi everyone, I have a relative that was gifted RE and is now looking at a hefty capital gains liability. 

    Could he purchase a new personal residence to live in? I.e., does the property have to be an investment? Or, is the only rule that it has to be in an OZ?

    I am still not clear on the dollar-for-dollar improvement. Is this a necessity? Or, are there additional tax benefits if you complete a dollar-for-dollar improvement? Are there any articles someone can suggest to learn more about this aspect?

    Does anyone have any attorneys they would recommend for forming a QOZF? I read earlier that it would be a securities attorney? Is this everyone’s experience?

    Another question - some resources I’ve read say that cap gains taxes can be eliminated but others say that they technically have to be paid back but not until sometime in mid 2040s I believe. Can anyone clarify this part?

    Any resources are much appreciated! I am happy to set appointments with attorneys or any other experts to learn more. 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free