Benefits and Myths: Tax Advantages of Opportunity Zones

Real estate investor or not, we would all love to save some money when and where we can. One way this is possible is through purchasing property inside your states’ opportunity zones; doing so can provide you with some large tax savings throughout the years. In this week’s video, Kevin discusses opportunity zones. He explains what they are, the tax benefits within the zones and how they work, and lastly the myths that revolve around opportunity zones. Check out the map below to see where your state’s opportunity zones are located!

Opportunity zones and how they work can be an extremely complicated subject to completely understand. If you are interested in learning more about these zones and how they work or have any questions about any of the information discussed in this video, please reach out us! Whether it is through a phone call, email, through the comments on YouTube, or through our Facebook page, we are here to discuss anything you may want, in a prompt manner.
#opportunityzones #opportunityzonestax

[boomersDCAT]

Finally someone who explains in layman’s terms how opportunity zones work ! 👏👏

[HasanDaddy]

Best explanation I’ve finally found on this matter (holding 10+ years etc). Thank you!!! A lot of people make videos about this matter, and don’t know what they’re talking about.

[Breaking_barriers]

One of the best explanations on the internet!!!

[dianafedorov]

This is the MOST CLEAR explanation. Thank you!!!

[udeeization]

Nice simple to the point breakdown. Thank you!

[atoz]

Very thankful for this VERY clear explanation!

[stupidtp]

Does this mean its late to get the 5/7 year tax deferrals now that Dec 2026 is less than 2 years away?

[JohnCunninghamTeam]

nicely presented. Would entitlements qualify as "a substantial improvement" within that 30 m month window of time?

[coryhansen]

Great video to help clear up a few of the myths about OZ's! Do you have any videos on investors who invest in businesses rather than real estate?

[Musiclover__]

Question: i just built a new home in an opportunity zone.

I was not aware of using funds specifically for opportunity zones and used my own.

With that being said, since it is a new build and in an opportunity zone…. Would i be able to refinance with an opportunity zone fund ? Asking because i would like to take advantage of the benefits an opportunity zone brings.

[karlkloster]

As far as investinng in a QOZ from a real estate sponsor, if an investor needs to liquidate (death, diability or optional ... which are not allowed) can they sell their shares?

[ThePantheistPope]

While Operating and holding the QOZ do you get tax benefits in the business that is being operated in an Opportunity zone? Or is that just business as usual?

[jatinahir]

if I invest in ozf what happens to depriciation recapture on my original property which I sold to realize gains ? Is that deferred too? Say I have 90k cap gain and 140k depriciation recapture. I'm in 24% bracket NY resident. Non accredited investor. How much should I invest in ozf to defer it all ? Most funds do no accept under 100k. I'm ok to put any/all money from my sale proceeds but not extra from my pocket.

[Kalosius]

I live in Denver and I am selling a place in the mountains, I am small potatoes. I think that the time has passed to get the full 15%, only 10% at this point correct? Some of the zones in Denver are prime real estate like right near downtown and near country clubs. Are all the opportunity zones in funds? A lot of these areas are going to get a massive investment and most likely put up expensive condos or homes because they are prime locations. How do you lose money on this?

[stevenjgarner]

My understanding is the whole QOF program is scheduled to sunset as of December 31, 2026, making any investment since December 31, 2021 unable to become fully realized. Is that true? Are there any work-arounds?

[drewstewart]

Can I spread out the gain payment or does it have to all be paid in one if I keep the money invested? I'm working on a gain that will put me over the $440k threshold if i realize it all in one year. I would be under the threshold if I were to pay 18% per year for 5 years (assuming 10% forgiven). My current gain is $700k. If I put $700k in an OZ can I keep the money in the OZ and pay $126k of the $700k gain every year for 5 years while still keeping the $700k in the OZ?

[SOLIACTO]

@5:55 you said that the initial investment must be at the same time as the fund is created...OR... it must have substantial improvement. Is that correct? or was it supposed to be an "and"? It made it sound like I could just buy a rental and create a LLC at the same time, hold it for 10 years and have no gain.

[joelgardner]

So if you use 100k capital gain towards the purchase of a 1M building, after 10 years you sale that building for 2M, since you only invested 100k initially (10% of the purchase price) from a capital gain, does that mean you only don't pay taxes om 10% of the 1M gain after holding 10 years, or do you not pay taxes on the entire 1M gain?

[douglasc.shearer]

Question... Can I buy into an already fully improved opportunity zone to receive the long term 7 year tax benefits? Thanks to anyone who can answer!

[jdarst]

If I buy a strip mall in an Opportunity Zone for $2.5 Million do I have to improve by putting another $2.5M into the mall?