Opportunity Knocks For Distressed Areas Thanks To Trump Administration – IOTW Report

Opportunity Knocks For Distressed Areas Thanks To Trump Administration

Laura Ingraham’s first block was dedicated to the newly created “Opportunity Zone” economic development program. Created last year by the federal government, the program was fleshed out by state governors who identified those regions within their states that qualify for the designation. The program grants a deferred capital gains tax break to those who invest into the 8,000 or so areas of the nation deemed economically distressed.

The creation and active administration of this program will be the antidote to Lyndon Johnson’s “Great Society” debacle of dependence on an uncaring federal leviathan.  More

IRS Opportunity Zone frequent questions Here 

Map of Opportunity Zones (you have to zoom in to the county level to see them)  Here

5 Comments on Opportunity Knocks For Distressed Areas Thanks To Trump Administration

  1. “If the QOF investment is held for longer than 5 years, there is a 10% exclusion of the deferred gain. If held for more than 7 years, the 10% becomes 15%. Second, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor is eligible for an increase in basis of the QOF investment equal to its fair market value on the date that the QOF investment is sold or exchanged.” – IRS Frequent Questions page

    Those that risk their own private money into these areas can’t just flip the properties or businesses in order to receive the capital gains break. They have to wait 5 or more years and the break is greater the longer that money is left in the distressed area.

    I’m not sure too many fraudsters and scam artist are going to wait that long to cash in on the government’s largess. Of course there is no capital gains to receive tax relief from if the investment fails then there would be no point in participating in the program to begin with.

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  2. Dr. Tar — yes, all good incentives for the investors, but I’m talking about all the local bureaucrats and administrators who manage to line their own pockets. They can smell gov’t money the way a wildebeast can smell water in the desert.

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