By Suzet McKinney | Forbes
Opportunity zones are the hottest new investment opportunity in America. Now it seems as if everyone with capital gains to shield is trying to invest in them.
Established by the 2017 Tax Cuts and Jobs Act in an effort to incentivize investment in economically struggling areas throughout the United States, opportunity zones offer investors access to significant tax benefits, including the ability to defer their capital gains from taxable income through reinvestment. More critically, investments in opportunity zones that are held for at least ten years are exempt from income tax.
Unsurprisingly, these big incentives have sparked a great deal of interest from seasoned and novice real estate investors alike. But, in their race for riches, investors must not lose track of the real purpose of opportunity zones: revitalizing communities through the creation of social and economic opportunity.