Experience in Opportunity Zones
Looking to buy a commercial property this year. Anyone have experience with Opportunity Zones? I know what they are, I'm looking for positive and negative feedback about their experience so far.
What is the reason you're interested in an opportunity zone?
Do you have a massive tax liability?
A business (non-real estate related) will be sold next month. Yes, high capital gains and looking to defer capital gains tax.
#2 Land & New Construction Contributor
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- Charlottesville, VA
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#2 Land & New Construction Contributor
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Opportunity zones have many advantages. Only real downside is you must hold for10 years to gain max benefit from gains earned on the investment. This is an issue for some not so much for others.
Not all opportunity zones are created equal. You need to make sure the deal is a good deal even before the opportunity zone benefits.
Lots of capital is going into these deals.
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#2 Commercial Real Estate Investing Contributor
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We work with OZ deals, the large portion come from tax filing, its a simple process. Let me know if you have additional questions on structuring the PSA to use your gains.
@Haley Sooudi I'm invested in one OZ fund as a passive investor and looking to possibly do my own. IMO it's way too early to get feedback from anyone on how they're going because they really just started. This website has the best list of funds I found https://opportunitydb.com/funds/
I'd recommend talking to some of them and seeing who you feel comfortable with.
I believe your gains must from your business must be realized, in other words, you need to file 2019 tax return to have the exact amount to be invested. Not a CPA, so please check with your CPA on it to confirm.
If you can speak with a lawyer and your CPA or find someone that specializes and is well versed in this space, that would help you regards with information.
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@Haley Sooudi Hi Haley, one aspect of OZ's that people don't realize when starting their research is that you have to pay to improve the property. For example, if you buy a property for $500,000, you have to invest another $500,000 to improve the property. The reason? Part of the purpose of the OZ's is to improve the neighborhood where the property is located. This seems to stop a lot of people from investing in OZ's. Good Luck!