Don’t miss crucial news and insights you need to make informed commercial real estate decisions. Investors are lining up to buy projects in qualified opportunity zones and take advantage of the subsequent tax benefits, but the capital gains tax forgiveness is one of several benefits that come with opportunity zone investments. Discover why a freshly updated Lex, accompanied by a smart new direction and returning Broad Street Development owners, makes the property an enticing option for a new breed of office tenants. Wells Fargo Wealth Management does not undertake to advise you of any change in its opinions or the information contained in this report. It is important to understand the needs of these tenants as well as the rules and regulations of the entities providing the subsidies to make sure you have a management plan for compliance. Information Brief Sponsored by Lex Lex: The Art Deco Tower for a New Office Tenant Discover why a freshly updated Lex, accompanied by a smart new direction and returning Broad Street Development owners, makes the property an enticing option for a new breed of office tenants. Liquidity may be achieved by refinancing equity in property.
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According to the IRSopportunity zones were created to benegits the goal of spurring economic development and job creation in distressed communities. Opportunity zones are the subject of heavy interest from multifamily investors because of the potential they carry to reduce or eliminate capital gains. It seems like almost every commercial real estate headline is focusing on. Some firms are raising capital and funds solely for investment in opportunity opportnity. While investors are primarily focused on the tax incentives these areas provide, purchasing an apartment building tenant benefits in opportunity investment zones an opportunity zone should be evaluated like invesfment other apartment investment. Consider some of the following ideas when analyzing your potential investment in an opportunity zone. In any apartment investment, it is essential to consider the renter profile to know how you will manage your building to meet the needs of that profile.
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The hottest pitch in real estate is the opportunity zone, one of 8, geographic areas in the United States in need of economic investment. Opportunity zones encompass three enticements that make real estate attractive to professional investors: the promise of change in underserved areas, the chance of an outsize investment return and the opportunity for a huge tax break. But confusion arose over how to invest in the opportunity zones, which were designated in the tax overhaul. Guidance from the Treasury Department, released last month, helped clarify how investments in these zones would work. It also acted as a green light for managers raising money for funds to invest in these. To maximize the tax benefits, investors are restricted to a holding period — five, seven or 10 years, depending on the tax break — which limits their ability to sell the real estate.
Menu Search. Perhaps the most impactful incentive is that the program provides the means for the deferral benefis recognizing a capital gain from the sale of any asset business, stock and bond portfolio, or real estate by reinvesting the gain into an Opportunity Zone project. Our Insights Our Latest Commentary. But, much like EB5—which encourages non-U. Whether any planned tax result is realized by you depends on the specific facts of your own situation at the time your taxes are prepared. Investors are lining up to buy projects in qualified opportunity zones and take advantage of the subsequent tax benefits, but the capital gains tax forgiveness is one of several benefits that come with opportunity zone investments. Financial Advisors of Wells Fargo Advisors may refer clients to the bank for an ongoing or one-time fee.
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