July 2019 Comal Hays REIA Meetup - Opportunity Zones

[Linda Hastings]

This month, we're delving into one of the hottest real estate investment topics of 2019 > Opportunity Zones

If you're unfamiliar with the Qualified Opportunity Zone legislation that was passed in December 2017, under the Tax Cuts and Jobs Act (TCJA), you're still in time to learn about the amazing capital gains deferral and elimination benefits created by Congress, to incentivize real property development and business venture investment in the nation's lower income neighborhoods. 

Not since 1986 has the U.S. taxpayer witnessed such broad changes to the tax code. The TCJA revised individual income tax rates, minimized itemized deductions while boosting the amounts for standard deduction, child tax credit, AMT thresholds, and estate & gift taxes. In addition, the new tax provisions greatly favored businesses by permanently lowering the corporate tax rate and by providing tax deductions to pass-through entities (LLCs & S-Corps) through 2026. 

Section 1400Z (amended under the 1986 Internal Revenue Code) gave birth to the Qualified Opportunity Zone (QOZ) as a new incentive investment program. Capital gains generated from investments in 2018 forward can now be deployed into real estate projects and business ventures in over 8700 low income districts, per the US Census Tract. At the heart of the tax incentive is long term equity investment, to create commercial properties and businesses, to spur on job growth in underserved U.S. communities.

Some of the highlights we'll be discussing include >

• - Recent IRS Rules & QOZ Compliance, since the legislation passed at the end of 2017
• - Using QOZ maps to locate potential properties
• - Long term commitment to real estate projects in QOZ communities
• - Structuring an Opportunity Zone Fund for passive investor participation
• - How the QOZ program differs from the 1031 Tax Deferred Exchange
• - IRS imposed Timelines and Deadlines that affect QOZ investments
  - Pairing other Federal, State & Local Tax Incentive Programs with the QOZ 
• - Additional QOZ & QOF Resources

Surrounded by controversy, the TCJA of 2017 has as many opponents as advocates. Tax breaks for the rich. The ACA penalty elimination. Drilling in the Arctic National Wildlife Refuge. One thing that did bring bi-partisan agreement was the benefit the QOZ could bring to America's low-income communities. That's where real estate investors can bring about positive change!

Since our first meeting in 2015, the Comal Hays REIA has been a nuts and bolts group, diving into the details of investment real estate deals and dollars. Some of the best information is shared informally, between those who show up. Come prepared to learn and to participate.

This month's venue, Summer Moon Coffee, is located right off of I-35 in San Marcos. They serve coffee, shaken, nitro & blended, along with pastries, sandwiches and tacos. Good seating, parking and access off of exit 205. Check out their website > http://woodfiredcoffee.com/

MAP LINK > https://goo.gl/maps/mUjqVpH2BAp

Whether you're a seasoned pro, looking to do your first deal or a total newbie to the real estate investment game, we invite you to come, participate and to network this Saturday!

Be sure to visit our website > www.comalhaysreia.com

Special thanks to meetup co-chairs: @Mike Walker and @Chris Koble

Keyword alerts: New Braunfels, San Marcos, Kyle, Buda, Wimberley, Canyon Lake, Seguin, Dripping Springs