The Skinny on Qualified Opportunity Zones – EP.25

Summary

In today’s episode we’re talking all about qualified opportunity zones — these things are amazing. They’re portions of the country that are economically disadvantaged, and if you invest in those areas you get incredibly favorable tax treatment.

First, we take you through the history of qualified opportunity zones (which has a pretty interesting history in itself!) — then we get to the really exciting part: the incredible tax breaks to be had by investing in these zones and how to go about it. And then, to wrap it all up with a bow, we take you through a real world example to illustrate how it’s done.

Key Takeaways:

[:12] All about today’s episode!

[:55] The history of qualified opportunity zones and how they came about.

[3:31] What an opportunity fund is.

[5:42] What a qualified opportunity zone is.

[7:35] The exciting stuff: the tax benefits from investing in a qualified opportunity zone via an opportunity fund.

[11:51] A quick recap on all the amazing tax benefits.

[12:24] Brad takes us through a real world example.

[16:48] Our final warnings on qualified opportunity zones: make sure it is still a good deal — a bad investment with a good tax treatment is still a bad investment.

[18:57] One last thing you need to remember: you do have to do this through a qualified opportunity fund.

[19:56] Does this all make sense in the private equity world?

[20:41] A final note about qualified opportunity zones on the real estate side.

Resources on Opportunity Zones:

https://www.cdfifund.gov/pages/opportunity-zones.aspx

Opportunity Zones: The Map Comes Into Focus