Have you heard the new term? Everybody is talking about it because it’s the latest way to get a huge tax break.
Opportunity Zones were created in the Tax Cuts and Jobs Act of 2017 (aka the Trump tax bill). If you invest in opportunity zones for a certain period of time you will not have to pay capital gains, or at least a reduced amount.
First you need to invest your money into qualified opportunity zone funds. From there the money is used to purchase investment property in a qualified opportunity zone. Where are the zones you ask? Throughout Los Angeles across multiple locations which allows you to invest locally and get the tax savings.
Click on this link and put in your zip code. (The best map I’ve found so far.)
The zones were selected where the incomes are very low which could bring more demolition of older apartment buildings in Los Angeles and claims of displacement. That is one of the biggest downsides.
Here are a few more rules to get you started as I understand them:
If you are interested you will need to talk to a professional to find out the details including legal and otherwise. I have a real estate syndication specialist who can provide more details and also an attorney who can help you create the fund. Please reach out.
Crissi Avila will teach you how to buy smart. We’ll look at location, development, and turnover so you can spot opportunities long before most even start considering them.