Is there money to be made in opportunity zones?

Question

The Tax Cuts and Jobs Act included a new federal incentive—Opportunity Zones—meant to spur investment in undercapitalized communities. Any corporation or individual with capital gains can qualify. The program provides three tax benefits for investing unrealized capital gains in Opportunity Zones.

The Biggerpockets calculator is an awesome tool to review but it doesn't take into considerations these tax benefits.

Is anyone including that benefit when evaluating a potential buy and hold property?

Lesley Resnick · Answer

I have looked at OZ's number of times in last 2 years. I never pulled the trigger. I may go back to it for a build to rent project. As an individual it is not hard to do. Partnership requires more legal. If you take other people's money it gets really complicated and requires a company that specializes in OZ funds.

Basit Siddiqi · Answer

@Mike WadsleyThere are tax benefits for setting up a QOF and investing in QOZ if you have tax on capital gains that you want to defer.You likely want to speak to a professional on how to properly set up the QOF and to stay compliant on an annual basis.Regarding if "there is money to be made", if you have a property that needs fixing into, you may have a marketable property.

Is there money to be made in opportunity zones?

2 Replies