With the passage of the Tax Cuts and Jobs Act of 2017, President Trump’s administration began a policy that will have an incredible impact on the real estate industry for years to come. Though perhaps not discussed as much as some of the more controversial legislation put forward by the Trump Administration, the creation of “Opportunity Zones” will have a heavy influence on land investment for years to come.
For investors to receive the highest incentives in Opportunity Zones, they must make long term investments. The incentives are tax exemptions that increase every few years until the 10-year mark after which the investor is exempt from any capital gains taxes whatsoever.
Gary Ralston, CCIM, of Saunders Ralston Dantzler Realty, stated that he “anticipate(s) that stockbrokers and institutional investment sponsors will raise billions via Opportunity Zone funds. Therefore, there should be an abundance of investment capital,” and added, “but it is good to keep in mind that institutional investment sponsors typically seek larger-scale investment opportunities and recognized sponsors (developers).”
Due to the relative newness of the Opportunity Zone system, any potential investors should be sure to consult with experts before investing in an Opportunity Zone. For now, however, Opportunity Zones offer substantial opportunities to real estate investors and landowners.
For more information about Opportunity Zones, watch the video below in which The Land Journal interviews Tyler Davis about Opportunity Zones.
About Tyler Davis
Tyler Davis is an Accountant working with the property management division at SVN | Saunders Ralston Dantzler Real Estate. Tyler recently joined the brokerage after spending five years in the tax practice as a manager at PricewaterhouseCoopers in Birmingham, Alabama. Tyler graduated summa cum laude with his Bachelor’s in Accounting from Samford University in 2013 and received his Masters in Taxation degree from the University of Alabama in 2014. After passing the CPA exam, he began his career with PwC in 2014 where he gained valuable experience working with both life and property and casualty insurance companies across the country.
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