Opportunity Zone Private Capital Long-Term Investment Benefits Report Launched

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A report has been launched to explain the Opportunity Zone program, which offers long-term investors capital gains tax benefits and focuses on property investments in low-income communities.

A new report has been launched to explain the process of investing in the Opportunity Zone program and highlight the gains tax benefits. The team at the Wealth Building Way platform explain many people may be unaware of the tax reduction benefits associated with Opportunity Zone projects as an alternative real estate investment.


Read the report in full at https://wealthbuildingway.com/how-investing-in-opportunity-zones-works


The newly launched report explains the goal of the Opportunity Zone program, which was created as part of the 2017 Tax Cuts and Jobs Act, was to attract private investors and capital for long-term investments in low-income communities.


In return, investors can expect meaningful capital gains tax benefits in the form of tax deferral, reduction, and elimination. The team at the Wealth Building Way explain the process is simple, savvy investors invest their qualifying capital gains earned by selling stocks, a business, or real estate in a Qualified Opportunity Fund (QOF).


Every QOF must meet certain requirements but the most important is the fact that it must invest in Qualified Opportunity Zone Property. This can include a domestic corporation that is viewed as a Qualified Opportunity Zone Business, domestic partnership that is recognized as a Qualified Opportunity Zone Business, or a Qualified Opportunity Zone Business Property.


Wealth Building Way explains that while almost any asset could be designated a Qualified Opportunity Zone Business Property, multifamily properties are expected to be key assets in QOF terms. The team say this is likely due to the fact lower-income residents in economically underserved communities tend to live in these small to medium-sized properties.


Potential benefits available range from tax deferral of reinvested capital gains, a tax reduction program, or the elimination of capital gains tax resulting from the sale of a QOF investment if the investment is held for a minimum of ten years.


A spokesperson said: “The most recent round of proposed regulations contains a provision that makes it easier for QOFs to invest in multiple properties, allowing for a more diversified QOF portfolio with a single investment. However, it is important to note this provision has not been finalized, which is an element of risk that should be considered by investors.”


To read the report in full, interested parties are invited to visit the link provided.

Release ID: 88990016