Don’t Rush to Opportunity Zones
November 20, 2018 | Holly Dutton | Commerical Property Executive
The Opportunity Zone Program instituted along with the Tax Cuts and Jobs Act of 2017 has caught the eye of many in the real estate development arena across the country. The program encourages private investment in low-income urban and rural communities by offering big tax cuts to companies that hold onto the investment for at least 10 years.
Within the 8,700 zones that have been established in the U.S., investors can defer capital gains taxes and avoid paying taxes on gains. Qualified investments in the zones must be made through opportunity zone funds and can be real estate, businesses and infrastructure.
While the program has been highly publicized and touted by the development community, many in the industry are cautioning against rushing into the program and instead advising companies to take their time and do it right to ensure that the program won’t be lost.