Many don’t know this, but opportunity zones were created as part of the 2017 tax reform to shore up economic activity and long-term investments within certain communities.
Opportunity zones are census tracts that are recommended by the governor and designated by the U.S. Treasury. In Houston, there are around 99 opportunity zones.
For investors, the tax advantages associated with opportunity zones are massive. One of the reasons why opportunity zones were created was to attract investors to these areas. For example, if you wanted to sell a property but you want to defer capital gains taxes, you could invest in an opportunity zone. Depending on how long you hold those properties, there are some very generous tax implications.
“For investors, the tax advantages associated with opportunity zones are massive.”
You don’t have to be an investor to take advantage of these opportunity zones. If you’re just thinking of buying a home, there are several census tracts to choose from. If you purchase a home within one of these areas, you can expect to be able to purchase a home with zero dollars out of pocket.
However, be sure to do your research. There are certain incentives that you as a homebuyer could qualify for, and make sure that you’re applying for the right programs when you buy property in these opportunity zones.
If you have any further questions about opportunity zones in the Houston area, including how to find them and what benefits they could present to your future prospects, don’t hesitate to reach out. I’d love to speak to you.
