Opportunity Zones for Real Estate Investors: The Good, The Bad, The Ugly

Several years after opportunity zone investments were incentivized by the federal government, new opportunities to invest in these areas to reduce current and future tax liability continue to arise.

The benefit of doing so becomes a bit smaller with each passing year as the end date for tax deferral remains the same. Yet, there are still reasons to consider making such an investment, particularly if you’ve realized a sizeable capital gain.

Today’s guest from Fiona Smith post explores the pros and cons of these investments, and we consider how pending legislation could impact opportunity investments for certain taxpayers if passed.

Fiona Smith is the Founder of The Millennial Money Woman. She’s been featured on Forbes, was a speaker at the national FinCon 2021 conference, and she’s a co-founder of a local non-profit charity, promoting financial literacy with underprivileged minorities.

If you’re an investor who may be facing a capital gains tax liability but doesn’t want to pay the taxes today, keep reading this article to see how you can not only defer your gains through 2026 but also how you could potentially decrease your tax liability.

The key here is to keep yourself informed and to act fast because the clock is ticking. One savvy way to help defer your tax liability on capital gains and potentially build passive income streams could be by investing in a qualified opportunity zone.

What is a Qualified Opportunity Zone?

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A qualified opportunity zone (also known as a QOZ) is a program that was established under the Tax Cuts and Jobs Act of 2017 with the idea of providing a tax incentive for real estate investors to invest their money in low-income areas.

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