Industry News: Qualified Opportunity Zones (QOZ)
What Are They
In simplest terms, Qualified Opportunity Zones are government-designated communities (where there is at least a 20 percent poverty rate), which offer an incentive for investing: the investment will become tax-free if it is held for ten years or more, no matter how much the investor gained in that time period. Right now, new Opportunity Zone investments can be made until 2027 and held until 2047.
What You Need To Know
There are important guidelines to follow to have your investment qualify for the incentive.
First, let’s talk about geography. If you invest in one of these communities, the business must continue to operate within said communities. Second, you must invest for a minimum of ten years! Third, it must be economically productive, meaning the investment must be new or greatly improve the original investment.
It’s important to pay attention to environmental challenges, so strong relationships with developers and other investors will help.
How to Learn More
Interested in investing? If this is a brand-new venture for your real estate career, it’s totally normal to feel nervous about making that financial leap. There’s no perfect time to make an investment – often, you just have to go for it. Most importantly, take the advice of expert REALTORS® who invest in real estate or work with investors as part of their business.
INTERESTED IN A CAREER IN REAL ESTATE?
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