Have you heard of opportunity zones? The Tax Cuts and Jobs Act of 2017 created an incentive for investors with capital gains to give back to a community in need. Click to see the map.
For example, if someone has stock investment gains and wants to sell, we call this capital gains. If they invest their stock “winnings,” if you will, into a qualified opportunity fund to invest in a neighborhood located within the qualified opportunity zone, they can get a tax break on their gains.
Watch the video to learn more about deferring and reducing the taxes on these types of investments and how they differ from 1031 like-kind exchanges.
If taken advantage of properly, in partnership with the government, an investor can direct funds into real estate or businesses in opportunity zones to create jobs, opportunities, and housing. The more success the investment has, the more the investor benefits. If you have any questions about opportunity zones and how to invest wisely, contact us by calling (781) 319-1900.
Copyright © 2019 Stiles Law, All rights reserved. Stiles Law is a Massachusetts licensed law firm and all content is based on Massachusetts law. The information presented above is meant to be used for general informational purposes and it should not be construed as legal advice or legal opinion on any specific facts.