Build-to-Suit Exchange

The Opportunity Zone provision, also known as the IRC 1400Z tax code section, provides tax incentives for deferred monetary gains. It also can offer tax exclusions for new gains on assets depending on your unique situation.

Investing in Opportunity Zones requires a strategic addition to the 1031 Exchange. It often entails buying up properties in lagging or economically distressed communities, but it can offer greater growth or opportunity in the long term. You can combine Opportunity Zones with another 1031 Exchange method or simply use them as your fallback or supplement method. To ensure you are choosing the right exchange method, it is critical to speak with a qualified intermediary or expert before investing. 

Why Choose to Invest in Opportunity Zones?

Like other methods, Opportunity Zones may result in large tax exclusions and deferred gains. They effectively complement other types of exchange methods as well, and you will likely see more success with them if you work alongside an expert. Other advantages of this transaction include:

  • Tax deferrals and exclusions. Opportunity Zones allow you to invest your prior tax gains into a Qualified Opportunity Fund (QOF) for a long period of time. As you hold these funds, the tax exclusion you can get on the deferred gain will increase. 
  • Invest from afar. You don’t have to live on or near the Opportunity Zone to recognize its tax benefits.
  • Economic development. Opportunity Zones can result in substantial economic change, especially positive economic development. They are designed to encourage economic expansion and job creation in financially lagging communities. 
  • Combine with other exchanges. Opportunity Zones complement other 1031 Exchange methods, and they can be combined with your existing 1031 methods.

Begin Investing in Opportunity Zones Today

If you want to learn more about Opportunity Zones or which 1031 Exchange methods will work well with this type of transaction, contact the qualified staff at Prime West Exchange, Inc. today. Leading real estate authorities and managers make up our team, and we can help you set up your 1031 Exchange the right way. To begin, contact our office by phone at (818) 442-2228 now.