Monday, August 4, 2025
NewsWave
No Result
View All Result
  • Home
  • World
  • USA
  • Business
  • Sports
  • Entertainment
  • Technology
Login
  • Home
  • World
  • USA
  • Business
  • Sports
  • Entertainment
  • Technology
Login
No Result
View All Result
Login
NewsWave
No Result
View All Result
Home Business

Taking Advantage Of Opportunity Zones In 2024

15 March 2024
in Business
0
Taking Advantage Of Opportunity Zones In 2024
Share on FacebookShare on Twitter
How does this make you feel?


by Ashley Tison, Founder & President – OZPros

As we look further into the future, the real estate landscape is poised for change. Prospective homebuyers and seasoned investors alike are watching mortgage rates keenly since these are likely to fluctuate throughout the year, especially considering the tumultuous real estate market we have seen over the past few years.

However, savvy real estate investors can strategically navigate markets no matter what happens to interest rates. One of the ways they do this is with programs that provide tax savings for using more equity, which is exactly what Opportunity Zones do, meaning 2024 will likely be a great year to take advantage of them.

What are Opportunity Zones?

Opportunity Zones have been around since 2017, when Congress passed the Tax Cuts and Jobs Act that created them to provide real estate investors with incentives for revitalizing marginalized communities. Toward that end, the governor of every state designated up to 25 percent of their low-income census tracts as a qualified Opportunity Zone that would benefit from development and economic stimulus. A total of 8,764 qualified opportunity zones were designated across every state, US territory, and the District of Columbia.

The Opportunity Zone program was designed to attract investment and new development into these areas to spur job creation and economic growth that will buttress the community’s prospects far into the future. To attract this investment, the government’s Opportunity Zones program offers tax advantages for those who provide the capital to revitalize these underserved areas.

The tax advantages of investing in Opportunity Zones

Deferring, decreasing, and eliminating taxes is of obvious interest to those with the capital to buy real estate and develop their own projects. It also comes in handy if you anticipate coming into a large capital gain, perhaps through the sale of a business, appreciated property, or cryptocurrency. By taking that capital gain and investing it in an Opportunity Zone, you can delay payment of the taxes for years. In addition, if you hold it for 10 years, you’ll owe no additional taxes on the investment you made in the Opportunity Zone!

In short, this means that investors can expect returns from Opportunity Zone investments that are worth approximately 25 to 30 percent more after taxes than other investments. Whether delaying, decreasing, or eliminating taxes, development projects in Opportunity Zones not only help low-income neighborhoods grow and prosper but also benefit their investors.

Taking advantage of these benefits doesn’t necessarily require having a ton of money and developing one’s own real estate in an Opportunity Zone, though. Investors can also buy into Qualified Opportunity Funds, which allow them to capitalize on existing or upcoming projects in Opportunity Zones.

Given our current economic conditions, the unique tax advantages of Opportunity Zones make particular sense in 2024.

Innovative strategies to optimize current market conditions

The economic landscape at the start of 2024 is marked by a global recovery from the challenges of the past few years. Central banks worldwide are carefully monitoring inflation, employment rates, and overall economic stability. Perhaps most importantly, inflation has slowed. As Reuters recently reported, “U.S. prices rose marginally in December, keeping the annual increase in inflation below 3% for a third straight month.”

In consequence, central banks may decrease interest rates as 2024 progresses. Indeed, some experts and prediction tools now expect the Fed to start tapping the target interest rate downwards as early as March.

This would provide a potential boon for borrowers and real estate investors. Rather than proceeding with the standard capital deck, now is the time for savvy investors to get creative and exploit the anticipated interest rate-time horizon. Innovative strategies like investing in Opportunity Zones allow investors to retool their portfolio to include more equity and, due to the tax deferral possibilities that Opportunity Zone investments bring, wait for more friendly interest rates.

In 2024, Opportunity Zones present investors with a unique vehicle that soaks up capital gains into equity positions. One’s stake in these projects can then be cashed out via refinance after a two-year hold — a time period that aligns well with the anticipated interest-rate horizon.

Opportunity Zones are a winning combination

A number of my clients are utilizing this strategy to good effect. For instance, one has invested in a multi-million dollar mixed-use development in New Jersey. This Opportunity Zone project has been able to attract the necessary equity despite higher interest rates due to its unique tax benefits. At the same time, the new construction is bringing much-needed revitalization to that community.

This makes for a winning combination. Investors make an attractive after-tax return, while the community enjoys a dynamic new driver of revenue.

Who wouldn’t want to do good while making money? If you would like to optimize your investment portfolio while mitigating interest-rate exposure, Opportunity Zones present a compelling option as an effective real estate investment strategy for you in 2024.

Ashley Tison

Ashley Tison, Esq. is the founder of OZPros, the leading Opportunity Zone consultancy. A leading consultant and attorney on Opportunity Zones, tax advantaged structures and investing strategies, he is an engaging and enthusiastic speaker on topics such as opportunity zones, tax advantaged alternative investments, real estate, and tax planning for leading national conferences and educational seminars.

Related



Source link

🪄 Creating a simple explanation...

Tags: Advantageopportunityzones
Previous Post

Arsenal in constant talks with star, ready to offer him £200,000-per-week

Next Post

Zee CTO Nitin Mittal resigns as company streamlines tech vertical 

Related Posts

Seniors Living in These 15 States Could Be Hurt Most by SNAP Cuts
Business

Seniors Living in These 15 States Could Be Hurt Most by SNAP Cuts

by My News Wave
4 August 2025
0

Many older Americans, particularly those aged 60 and above, face financial challenges in retirement without savings plans like 401(k)s or IRAs, leading to 8 million enrolling in SNAP for food assistance. Approximately 85% of these beneficiaries live alone, with over half relying solely on general assistance or Supplemental Security Income (SSI) for their livelihoods. Want More Context? 🔎

Read more
3 Numbers Investors Need to Pay Attention to When Investing in Stablecoins
Business

3 Numbers Investors Need to Pay Attention to When Investing in Stablecoins

by My News Wave
4 August 2025
0

Stablecoins have gained significant attention in 2023, with Treasury Secretary Scott Bessent highlighting their impact as a "force multiplier" for the U.S. dollar in a July op-ed. The stablecoin industry has surged from $20 billion to $250 billion in five years, with projections suggesting it could exceed $2 trillion soon, marking a substantial shift in digital finance. Want More Context? 🔎

Read more
If You'd Invested ,000 in Upstart (UPST) 3 Years Ago, Here's How Much You'd Have Today
Business

If You'd Invested $1,000 in Upstart (UPST) 3 Years Ago, Here's How Much You'd Have Today

by My News Wave
4 August 2025
0

Upstart (NASDAQ: UPST) is a financial services innovator with an AI-powered lending platform that enhances creditworthiness assessments, aiming to boost approval rates while managing default risks. Despite share volatility, the company is gaining investor confidence, and an investment of $1,000 in the fintech stock three years ago illustrates its potential growth. Want More Context? 🔎

Read more
3 Top Dividend Stocks to Buy in August
Business

3 Top Dividend Stocks to Buy in August

by My News Wave
3 August 2025
0

In a volatile market, risk-averse investors may find dividend stocks appealing for their potential to provide reliable passive income. One notable option is Realty Income (NYSE: O), a REIT known for strong dividends, which can avoid corporate taxes by distributing over 90% of taxable income to shareholders while adhering to specific income requirements. Want More Context? 🔎

Read more
Is Investing in the Nasdaq-100 a No-Brainer Move?
Business

Is Investing in the Nasdaq-100 a No-Brainer Move?

by My News Wave
3 August 2025
0

Investing in the top growth stocks on the Nasdaq has historically benefited investors, particularly through the Nasdaq-100 index. However, with soaring valuations and record levels in the Nasdaq Composite and S&P 500, investors must consider whether to continue with an ETF tracking the Nasdaq-100 or shift towards safer investment options. Want More Context? 🔎

Read more
Should You Forget Amazon? Why You Might Want to Buy This Unstoppable Growth Stock Instead
Business

Should You Forget Amazon? Why You Might Want to Buy This Unstoppable Growth Stock Instead

by My News Wave
3 August 2025
0

Amazon has experienced over a 300,000% increase since its 1997 IPO and continues to grow, with expected revenue growth of more than 9% this year. However, competitors like Shopify are emerging, bringing significant innovations to the online shopping sector, suggesting a shift in market dynamics. Want More Context? 🔎

Read more
NewsWave

News Summarized. Time Saved. Bite-sized news briefs for busy people. No fluff, just facts.

CATEGORIES

  • Africa
  • Asia Pacific
  • Australia
  • Business
  • Canada
  • Entertainment
  • Europe
  • India
  • Middle East
  • New Zealand
  • Sports
  • Technology
  • UK
  • USA
  • World

LATEST NEWS STORIES

  • US to require up to $15,000 bond for some tourists | Migration News
  • United flight declares ‘mayday’ with engine failure after takeoff from D.C.
  • Israel to decide next steps in Gaza after ceasefire talks collapse
  • About Us
  • Disclaimer
  • Privacy Policy
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact Us

Copyright © 2025 News Wave
News Wave is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • USA
  • Business
  • Sports
  • Entertainment
  • Technology

Copyright © 2025 News Wave
News Wave is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In