By Conor Donohue | CaliberCo
With the recent buzz surrounding the “Opportunity Zones” section of the Tax Cuts and Jobs Act of 2017 reports have flooded in highlighting the tax advantages and intricacies of how the program works. While it is no secret that this is one of the greatest capital gains tax reduction programs of a generation, less has been discussed regarding the specifics of the more than 7,800 designated census tracts within the program – or, the potential they hold for both investors and communities.
Opportunity Zones: What, Where, and Why?
Opportunity Zones are communities, typically economically-distressed, that have been designated by state and federal governments where new investments aimed at improving these areas are incentivized with preferential tax benefits.
There are over 7,800 designated census tracts eligible for these investments across all 50 states, however they are primarily in major metropolitan areas. With these designated Opportunity Zones in place, the potential impact is substantial for both those within the communities as well as investors.
With Opportunity Zones across the country the potential is high, however we chose to focus our investments in our own backyard – Southwest Growth Markets.
We like Arizona, Colorado, Texas, Nevada & Utah and in this article, we
“With the first opportunity zone fund set up in Arizona, this tool has been a great catatylst for investment”