Opportunity Zones

The tax code section IRC 1400Z is commonly known as the Opportunity Zone provision. It provides tax incentives on deferred gains and also potentially offers tax exclusions for new gains on assets. Investing in Opportunity Zones is a strategic addition to the 1031 Exchange and often includes communities that are lagging economically and/or “distressed” economically. This allows for growth and “opportunity” in the long run. Opportunity Zones can be utilized in several ways alongside your 1031 Exchange, either by becoming a fallback for your Exchange, an addition to it, or a supplement for it. As always, it’s important to talk to a qualified intermediary or expert before deciding to embark on this somewhat complex investment.

Why Choose to Invest in Opportunity Zones?

Opportunity Zones can result in massive tax exclusions and deferred gains just like many other 1031 Exchange methods. They complement other types of exchange methods, and with the help of an expert, can yield great benefits. Some advantages of this type of transaction include:

  • Positive economic change. Opportunity zones act as an economic development tool. They are specifically designed to help economic expansion and job creation in “distressed” or lagging communities.
  • Tax-deferrals and exclusions. With opportunity zones, you have the chance to invest your prior tax gains into a Qualified Opportunity Fund (QOF) for a long period of time. The longer you hold these funds the more of a tax exclusion you can get on the deferred gain.
  • Invest from afar. You don’t have to live on or near the Opportunity Zone to glean tax benefits from it.
  • It can be used with other 1031 Exchange methods. Talk to your qualified expert for more information about how Opportunity Zones can complement your existing 1031 Exchange methods.

Begin Investing in Opportunity Zones Today

If you have more questions about Opportunity Zones or want to get started making an investment in some, contact the staff at Prime West Exchange, Inc. today. We have real estate experts and licensed attorneys on staff and are ready to help you set off on the right foot. To get started, contact our office by phone at (866) 724-1031 now.