Over the past several months I have received several calls from real estate investors interested in purchasing assets within Opportunity Zones.  Lets take a closer look at the appeal.

A less known section of the 2017 federal tax overhaul triggered the launch of what is being referred to as the Opportunity Zone Program.  The newly formed program designated areas throughout the nation as Opportunity Zones.  In order to be designated an Opportunity Zone the area had to meet certain demographic and socioeconomic characteristics.  The goal of the program is to spur development and new investment into these areas.  Why is this attractive to an investor?

A long used investment vehicle for property investors, the 1031 like kind exchange, has for many years successfully allowed investors to defer gains from property investments to a later date.  The key word being defer.  Opportunity Zone investments are similar in some ways to 1031 like kind exchanges but with one additional key difference.  Opportunity Zone investments, when held for at least 10 years, allow investors the potential to permanently exclude a portion of their profit from taxes. 

A potential permanent tax exclusion of a portion of an investors profits can make a tremendous impact on long term R.O.I.  Our very own Tippecanoe County is home to various Opportunity Zones.  In fact, a few of the properties I currently have listed for sale lie within Opportunity Zones.  Now might be the time for you to consider the OPPORTUNITY to potentially keep your gains.  Please consult your tax advisor for further details, or feel free to reach out to me to discuss property offerings within the Opportunity Zone.  

Contact Jim directly to discuss your next Opportunity Zone project in Tippecanoe County, Indiana.