If you're a real estate investor, you won't want to miss out on this opportunity:
Real estate investors may have a big opportunity for tax breaks by investing in new “opportunity zones.” On Friday, the Treasury Department outlined rules for such investors, should they decide to finance the development of these “opportunity zones,” or under-served regions of the United States.
The best news? Real estate investors everywhere can take part in helping finance these areas, no matter what type of investor you are – from individual investors, to corporations, to estate and trust investors.
The capital gains on opportunity zones also will not be taxed until the end of 2026 – or, until the investment is sold, whichever one happens to come first. According to Treasury Secretary Steven Mnuchin, “We want all Americans to experience the dynamic opportunities being generated by President Trump’s economic policies. This incentive will foster economic revitalization and promote sustainable economic growth, which was a major goal of the Tax Cuts and Jobs Act.”
If you are an investor, this may be an opportunity to take advantage of. Mnuchin predicts that the overwhelming amount of $100 billion could be invested into opportunity zones, meaning that there is definitely room for a multitude of investors to take part.
While this idea is certain to create some judgement (or, at the very least, raise questions), an additional Treasury official (name not provided), believes that it is a step in the right direction: “We felt it was important to issue the core guidance now that’s needed to get the funds up and operating and not wait until we have every question answered.”
It may certainly be a while until every economic question is answered, but for the time being, there is opportunity for growth – and incredible tax cuts for investors. If you are in the process of looking for a new investment, this would definitely be one to take into account.