Morris Manning & Martin, LLP

Opportunity Zones Present Benefits, Challenges

08.27.2018

MMM Partner Matt Peurach reviews the basics of Opportunity Zones, low-income communities that the U.S. Treasury designated as needing economic revitalization through new capital investment. The goal is to give low-income communities a boost by giving investors a tax break.

All 50 states, five territories, and the District of Columbia now have opportunity zones. Each zone is a census tract with a poverty rate of at least 20% and median family income up to 80% percent of the area median. (Limited exemptions are available for tracts contiguous to low-income areas.)

Many real estate investors are excited because investing in the zones – created through a bipartisan effort in the Tax Cut & Jobs Act of 2017 – can offer significant tax benefits. If a taxpayer sells property, stocks, or anything else that generates gains, they get a benefit if they reinvest those gains in what’s called a Qualified Opportunity Fund. 

Read the full article in the Saporta Report here.