What are Opportunity Zones?

Are you looking for the perfect opportunity to invest in real estate? If you’re looking to construct a new home anywhere in the U.S., you'll need to pay a lot of taxes. Well, anywhere except opportunity zones. In this blog, we will tell you exactly what opportunity zones are and why you should consider investing in them.

Opportunity Zones Defined

Opportunity zones are economically distressed areas where investors are given leniency in taxes to encourage them to invest more. Opportunity zones were added to the United States tax code in December 2017 under the Tax Cuts and Jobs Act (TCJA). The governors of each state are responsible for designating opportunity zones in that state. Each state can designate up to 25% of eligible census tracts as opportunity zones. As of right now, all 50 states and Puerto Rico have submitted and have been approved for designated opportunity zones. 

Furthermore, if you wish to see a list of all opportunity zones, click here. You can also view the designated census tracts on a visual map here. 

Who Will Benefit from Opportunity Zones?

Another question that arises is who will benefit from such opportunity zones? Well, primarily, there are two parties who will benefit the most out of these zones. Firstly, of course, the investors, they will generate huge returns on their investments because of the outstanding tax breaks provided by the government. More importantly, the economically distressed communities will benefit from these investments because they’ll have new real estate and businesses built in their areas. It will lead to decreasing unemployment and the eradication of poverty. 

You might be thinking that you need to live or work in the designated opportunity zone to invest in real estate in that zone. Don’t worry, it isn’t true. You can take advantage of these tax incentives even if you don’t live, work, or have an existing business in an opportunity zone. If you have a recognized eligible capital gain, then you just need to go and invest in the construction of new homes or other properties. After that, you can choose to defer the tax on that capital gain.

Why Should You Invest in an Opportunity Zone?

There are two reasons for it:

Your Own Financial Gain – If you’re a taxpayer and sell an asset for a capital gain, you can easily make a huge sum of profit from investing in opportunity zones. If you hold the investment for 10 years, you won’t need to pay capital gains tax at all.

Creating Value for the Distressed Communities – Thousands of low-income communities in all states of the U.S. have been designated as opportunity zones. Each investment will become an effort towards improving the standard of living for these low-income communities. 

The Bottom Line

Evo Opportunity Fund is committed to developing energy-efficient real estate in Qualified Opportunity Zones by creating sustainable housing for all. Evo promises to utilize the radical tax breaks provided by Opportunity Zones. The timing for this opportunity is now. For more information, visit our website www.evoopportunityfund.com.