Opportunity Zones are the talk of tax season: a brand new program encouraging investment in underserved areas by offering tax relief to a broad swath of investors. Ferox Strategies clients including Brooks in South San Antonio are on the cutting edge of this new program, bringing new interest to a redeveloping former military base. But, are Opportunity Zones right for you? Here to help is Ferox Strategies Chief of Staff Lucia Alonzo with a detailed overview of 2019’s top real estate investment.
The bipartisan-designed Opportunity Zone program was created in 2017's Tax Cuts and Jobs Act and is now gaining interest in the investment community. Aimed at promoting long-term investment, economic growth, and community benefits, Opportunity Zones allow investors to reduce or even avoid capital gains taxes by re-investing gains in poverty-stricken neighborhoods. When compared to similar federal programs that have come before, Opportunity Zones offer many more eligible investment locations and welcome a broader range of investors. Opportunity Zones were also chosen by state and local officials within federal parameters to best target the economic boost from Opportunity Zone investors.
While many investors are eager to dive in, more clarification may still be needed from the Internal Revenue Service (IRS) and potentially Congress before the Opportunity Zone program takes off. The Opportunity Zone program was intended to bring new investment to economically strained areas, but some members of Congress are concerned that big businesses could take advantage of the program while leaving Opportunity Zone residents behind. Some businesses are also concerned that the program too strongly favors investments in real estate rather than new businesses, infrastructure, or other improvements. What's still unknown about the Opportunity Zone program, and how could the incoming 116th Congress beginning in 2019 change the Opportunity Zone program? Click through to read Lucia's introduction to the Opportunity Zone program, and contact the experts at Ferox Strategies to learn more!