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Updated almost 3 years ago,
Utilizing Opportunity Zone To Defer Taxes For Owned Development
Hello all,
I am looking for input to anyone who has an understanding of the benefits for utilizing the Opportunity zones. I know the benefits, however am looking for opinions as to if it would really pay off in my circumstance. Any help is greatly appreciated.
We are currently working to sell two SFD's and one townhome. After the sell we will owe roughly 103k in recap and cap gains (total). We are selling the assets to utilize the money to help develop a 30 townhouse development which just so happens to be located within a opportunity zone. We currently already have 12- 2bed/2bath apartments on the property and are doing a phase two, which has already been approved by the city. The phase two will develop 30- 3bed/3bath 1CG townhomes.
My main question is would it be worth, or even an option to utilize the opportunity zone to help utilize the 103k now and defer the tax obligation until later? It isn't really a show stopper one way or the other but I have spent alot of money in trying to minimize taxes and defer as often as I can. Would love to know more in regards to the utilization of the opportunity zones.
Thanks/Regards,
Joseph