CTW 089: Should You Invest in Opportunity Zones?
If you haven't heard of Opportunity Zones, you need to read more about them. These are economically distressed areas that our government has designated to promote development or development by providing tax benefits to investors.
Investors that are realizing capital gains from recent sales can take those proceeds and invest them into Opportunity Zone Funds.
If the new Opportunity Zone Fund is held for over 5 years, investors are able to defer 10% of the capital gains.
If held over 7 years but less than 10 years, investors are able to defer 15% of the capital gains.
Better yet, if held over over 10 years, investors are able to be completely exempt from any capital gains taxes.
The downsides you might ask?? There are a few but a couple of them are :
- You have to identify a qualified fund to invest in.
- They will no longer be available after 2026 so you must ask quickly if you want to take advantage of these great tax benefits.
As always, please consult with your CPA and attorney to determine if Opportunity Zones are the correct investment strategy for you.