I watched a bunch of your videos when I began CRE 3 years ago and didn't know squat. Now I'm coming back to learn about QOF's for a multi-story office building I've been asked to potentially list. Always great content!
What if I bought 800 acres in the opportunity zone that has no building on it. Is the land still not included in the basis? What would be the basis? It's land in a forest.
Good information! I am doing a video and learned a lot from you as well. I am a Realtor In GA and CA yet bought property in Indiana in an Opportunity Zone.
Great information. I have been sharing your video with people all over looking to understand our opportunity zones and why they are so powerful. Thanks for making this great video.
You really went into details here other sites made it seem like all you had to do was find a property in a opportunity zone and keep it 10 years and you pay no capital gains. They said nothing about making improvements or rehab
Great video and thank you for creating it. If this is about to help everyone then helping communities means providing true affordable housing, but I'm learning more and more that affordable housing is an oxymoron. Having said that, I will see how I can benefit from this program. I'm working on starting a company building small homes using light gauge steel and this information is helpful on figuring out where to drive my business towards. It's a small business but I'm setup to prove that we can build small affordable homes in underprivileged communities as long as our intentions are not to become millionaires overnight. The way I'm planning to do this is using a concept of a mini factory for offsite building and using as much automation as possible. The construction industry is shifting toward more offsite construction, we need to use the tools and technologies that are emanating from this 4th industrial revolution to achieve the goal of affordable housing. But we can not wait for the mega investors to come and do it for us. I just realized this is for Commercial Real Estate so my comments may not apply but I will live them here anyway.
Justin - Great video! Just need clarification on something. Let's say you sold stock with a cost basis of $100,000 for $200,000 and wanted to utilize the tax incentives of a QOF. Would your initial investment in the QOF be $100,000 in order to match the gain 1:1? Or would your initial investment need to be the $200,000 of sales proceeds you just received? Thank you!
Great video, great breakdown and phenomenal investment, I think this was created to help Communities, unfortunately it’s destroying the places I grew up, for the people that still live there, they are being pushed out. Double edged sword, great one side, devastating on the other
That’s great & all that’s EOZs essentially “keep” money in the community and dilapidated building can be taken down but what it being built? Luxury Condos? SoulCycles? Trendy Boutiques? Or are there incentives to build things that help communities like access to fresh groceries etc...
It helps the community in theory, but for now it mostly hurts it. It doesn’t have to be that way. I’m sure there are people that use this opportunity to improve schools and living conditions for poor communities
Hi, what's the definition of properties, eg: some one go to opp zone and start building a data center and generate business incomes, is data center considered as properties. Also does property have to be real estate development or it can be any type of business?
Not working in my community, in Houston off 610 fwy, no economic opportunities in my Opportunity zoned area, we are red lined out, Clinton Park is skipped over in Houston. Opportunity zone improvements and gentrification off 610 fwy, never hit East and South Houston, but downtown areas, heights, their brand new, and homeless population grew. This is going on around the country in every city, tax dollars, working for a few.
Hypothetically if you sell a business. Do you have to reinvest 100% of the sales gain in an opportunity zone fund in order to qualify to defer the capital gains. Or is it just have to reinvest the capital gains amount of the sale?
Hey Is the info for being “substantially improved” still the same or did IRS change it? The video stated that we have to double the adjusted basis and The site says additions to the basis of the property exceed an amount EQUAL to the adjusted basis” just wanted to know was this the same language that was used then vs now? Great video Thanks!
Can I use a Opportunity Zone Fund to add an auxiliary dwelling unit to my existing fourplex that is within and QOZ? If yes, would I substantially benefit being that I would be converting residential property to commercial property?
My understanding is the whole QOF program is scheduled to sunset as of December 31, 2026, making any investment since December 31, 2021 unable to become fully realized. Is that true? Are there any work-arounds?
I sold some rental property this year resulting in some LTCG, I've made a few business purchases, also my HSA and IRA contributions have brought my income down a little. My question is could I buy into OZ with a portion of my gains and just hold it till next year, basically spreading my tax due on gains over 2 years? This would help with my health insurance mainly and next year my income will drop back down to normal. Thank you for this video, very well explained.
I'm so confused, if you can answer this it would be great. If I realized my gain June 1st, I have until December 1st or 180 days to deposit into an opportunity zone fund. 1. Do I need to buy the property right away? Or do I have 6-12 months? 2. If I buy a new construction, does it need to be vacant for 3 years? What if someone buys the land in 2017, and built the property now in 2020, so it's technically been vacant?
YOU have 180 days to get teh funds out of your hands and into a qualified OZ fund. I would not have to be spent as of that date but remember that you have to have your funds invested in OZ deals for 5 years to get the 10% decrease in Cap gains taxed so time is not on your side. We do new construction and since its new the 3 year vacant rule is not applied.
@@paypalservices2724 I was assuming that your statement about new construction meant that you were buying a lot and building the improvement with your OZ funds. If it is already built you prior to you purchasing it I would think that the way the code is written you would need to spend money on improvements after purchase. Shannonrobnett@gmail.com send me a few more details and let me see if I can be of further assistance. If not I can send you to my OZ special accountant as a referral
@@ShannonRobnett we just went into contract in an opportunity zone on a 414 unit property that is already built and all. Does this mean that we cannot utilize the tax benefit of OZ because our capital improvements will not match the value of the buildings?
This seems like more of a headache to do then actually paying the taxes owed on the investment. I mean don't I still have to fill out a form the same way? And then what's the waiting time for when I can withdraw my investment?
Thank you for this video. It was incredibly helpful and informative. Do you have any templates or courses on how to include Opportunity Zones into a pro forma? I understand they will make deals more attractive but I'm not sure to quantify the benefits in terms of IRR, MOIC, etc.
Honestly though, why not no taxes but the stipulation is that they have to employ a certain percentage of their workforce within the area in question? If the taxes are not in question for 5 years at a time, wouldn’t you create more agency and revenue for the area to invest in? Why would you need taxes at all at that point?
You can but why would you? Most of the value is in capital gains vehicles that aren’t eligible for 1031. I got into it because I had gains from stock options. This saved my life
@@cakujuo how? If you have stock gains in 2021, you are saving 10% on those in 6 years plus the gain in your investment value. It seems like a good option for Long Term.
People should be pushing for an expansion of OZ’s. In fact, I would love it if you could invest capital gains and maybe even a portion of your taxable income into an OZ and not have to pay any taxes on that gain/income. Instead taxes should be paid only to future gains/income made on an investment that was funded with OZ money.
In Fayette Alabama there are two great opportunities for opportunity fund investors. A historic, downtown hotel and aircraft hangars at the airport. Both properties are in Opportunity Zones and will meet the criteria of substantial Improvement or Ground Up building. Email me if you have funds that need a home. These projects are promoted by the City and the Fayette Area Community Development Corp. You can see the overall project within which these projects fall at growingfayette.com Contact details are on that website.
This is really bad for American freedom. The ESG score applies to this. The smart home and the internet of things is linked to the new social credit score system for America. Like the one being implemented in China today. The Smart cities and new smart home zoning laws are very very bad for new home and property ownership. Damn people.
I think what he is explaining is a tax incentive that the White House is claiming is going to help POC in poor neighborhoods have more access to job development and investment in certain neighborhoods. This still only helps investors so it’s still ,from my opinion, trickle down economics.
@@brandontheoh3647 how can you say it "only helps investors?" if a vacant property is repurposed and both jobs and value is returned to the community thru investment, doesn't this help the community thru value, services, and jobs? doesn't this help create a better tax base for the city? doesn't the "new" attract new homeowners and businesses to the area? this program helps rebuild communities...its a win/win/win.
Have you invested in an opportunity zone fund? Let me know in the comments. Thanks for watching!
Yes we are currently invested in several
Currently investing in one thank you for valuable information
We are currently invested. It's a beautiful neighborhood and this is indeed an opportunity.
Just closed on an OZ in Indianapolis today!
@@YmaSumac555 hi, where is this? can we check? we're interested
Justin you knocked it out of the park. Clear, concise most appreciated.
Thanks, Fred!
I agree completely. Well done.
I watched a bunch of your videos when I began CRE 3 years ago and didn't know squat. Now I'm coming back to learn about QOF's for a multi-story office building I've been asked to potentially list. Always great content!
Excellent Video. Probably the most clear and concise explanation of OZs I've seen yet.
What if I bought 800 acres in the opportunity zone that has no building on it. Is the land still not included in the basis? What would be the basis? It's land in a forest.
Good information! I am doing a video and learned a lot from you as well. I am a Realtor In GA and CA yet bought property in Indiana in an Opportunity Zone.
Good to hear!
Great information. I have been sharing your video with people all over looking to understand our opportunity zones and why they are so powerful. Thanks for making this great video.
This is powerful policy!
You really went into details here other sites made it seem like all you had to do was find a property in a opportunity zone and keep it 10 years and you pay no capital gains. They said nothing about making improvements or rehab
Great video and thank you for creating it. If this is about to help everyone then helping communities means providing true affordable housing, but I'm learning more and more that affordable housing is an oxymoron. Having said that, I will see how I can benefit from this program. I'm working on starting a company building small homes using light gauge steel and this information is helpful on figuring out where to drive my business towards. It's a small business but I'm setup to prove that we can build small affordable homes in underprivileged communities as long as our intentions are not to become millionaires overnight. The way I'm planning to do this is using a concept of a mini factory for offsite building and using as much automation as possible. The construction industry is shifting toward more offsite construction, we need to use the tools and technologies that are emanating from this 4th industrial revolution to achieve the goal of affordable housing. But we can not wait for the mega investors to come and do it for us. I just realized this is for Commercial Real Estate so my comments may not apply but I will live them here anyway.
Justin - Great video! Just need clarification on something. Let's say you sold stock with a cost basis of $100,000 for $200,000 and wanted to utilize the tax incentives of a QOF. Would your initial investment in the QOF be $100,000 in order to match the gain 1:1? Or would your initial investment need to be the $200,000 of sales proceeds you just received? Thank you!
Great info, thanks for sharing and making it so easy to understand.
Thanks for watching, David!
Great video, great breakdown and phenomenal investment, I think this was created to help
Communities, unfortunately it’s destroying the places I grew up, for the people that still live there, they are being pushed out. Double edged sword, great one side, devastating on the other
That’s great & all that’s EOZs essentially “keep” money in the community and dilapidated building can be taken down but what it being built? Luxury Condos? SoulCycles? Trendy Boutiques? Or are there incentives to build things that help communities like access to fresh groceries etc...
It helps the community in theory, but for now it mostly hurts it. It doesn’t have to be that way. I’m sure there are people that use this opportunity to improve schools and living conditions for poor communities
Hi, what's the definition of properties, eg: some one go to opp zone and start building a data center and generate business incomes, is data center considered as properties. Also does property have to be real estate development or it can be any type of business?
Not working in my community, in Houston off 610 fwy, no economic opportunities in my Opportunity zoned area, we are red lined out, Clinton Park is skipped over in Houston. Opportunity zone improvements and gentrification off 610 fwy, never hit East and South Houston, but downtown areas, heights, their brand new, and homeless population grew. This is going on around the country in every city, tax dollars, working for a few.
SO just make sure you find a spot to make it work for you
Exactly... Work on moving out of Clinton Park if it's not allowing you to flourish economically to an area that you can flourish
Great info thank you Justin
Nice information
Hypothetically if you sell a business. Do you have to reinvest 100% of the sales gain in an opportunity zone fund in order to qualify to defer the capital gains. Or is it just have to reinvest the capital gains amount of the sale?
Hey Is the info for being “substantially improved” still the same or did IRS change it? The video stated that we have to double the adjusted basis and The site says additions to the basis of the property exceed an amount EQUAL to the adjusted basis” just wanted to know was this the same language that was used then vs now? Great video Thanks!
How do you qualify which is the right oz fund? Who are the oz fund providers?
Can I use a Opportunity Zone Fund to add an auxiliary dwelling unit to my existing fourplex that is within and QOZ? If yes, would I substantially benefit being that I would be converting residential property to commercial property?
Great info. How can a Non Profit Organization benefit from the purchase of an Opportunity Zone property?
Hey man great video! Quick question, how much do you need to invest in construction and development if you are building from the ground up?
If I invest directly in real state and not in the funds will I have any tax incentives?
My understanding is the whole QOF program is scheduled to sunset as of December 31, 2026, making any investment since December 31, 2021 unable to become fully realized. Is that true? Are there any work-arounds?
Nice job, appreciate the information.
What happened to these? No one talks about them.
Also no depreciation recapture
I sold some rental property this year resulting in some LTCG, I've made a few business purchases, also my HSA and IRA contributions have brought my income down a little. My question is could I buy into OZ with a portion of my gains and just hold it till next year, basically spreading my tax due on gains over 2 years? This would help with my health insurance mainly and next year my income will drop back down to normal. Thank you for this video, very well explained.
I'm so confused, if you can answer this it would be great. If I realized my gain June 1st, I have until December 1st or 180 days to deposit into an opportunity zone fund.
1. Do I need to buy the property right away? Or do I have 6-12 months?
2. If I buy a new construction, does it need to be vacant for 3 years? What if someone buys the land in 2017, and built the property now in 2020, so it's technically been vacant?
YOU have 180 days to get teh funds out of your hands and into a qualified OZ fund. I would not have to be spent as of that date but remember that you have to have your funds invested in OZ deals for 5 years to get the 10% decrease in Cap gains taxed so time is not on your side. We do new construction and since its new the 3 year vacant rule is not applied.
@@ShannonRobnett How long do you have to invest those funds?
@@ShannonRobnett Also, im confused, if it's new construction, i don't need to upgrade it?
@@paypalservices2724 I was assuming that your statement about new construction meant that you were buying a lot and building the improvement with your OZ funds. If it is already built you prior to you purchasing it I would think that the way the code is written you would need to spend money on improvements after purchase. Shannonrobnett@gmail.com send me a few more details and let me see if I can be of further assistance. If not I can send you to my OZ special accountant as a referral
@@ShannonRobnett we just went into contract in an opportunity zone on a 414 unit property that is already built and all. Does this mean that we cannot utilize the tax benefit of OZ because our capital improvements will not match the value of the buildings?
This seems like more of a headache to do then actually paying the taxes owed on the investment. I mean don't I still have to fill out a form the same way? And then what's the waiting time for when I can withdraw my investment?
Thank you for this video. It was incredibly helpful and informative. Do you have any templates or courses on how to include Opportunity Zones into a pro forma? I understand they will make deals more attractive but I'm not sure to quantify the benefits in terms of IRR, MOIC, etc.
Honestly though, why not no taxes but the stipulation is that they have to employ a certain percentage of their workforce within the area in question? If the taxes are not in question for 5 years at a time, wouldn’t you create more agency and revenue for the area to invest in? Why would you need taxes at all at that point?
Great explanation. Can you discuss a Qualified Census Tract. I just purchased a property that is in both an OZ and QCT.
How can property owners can benefits from opportunity zone WITHOUT selling?
good question
Great video.
Can you 1031 exchange into an opportunity zone fund?
You can but why would you? Most of the value is in capital gains vehicles that aren’t eligible for 1031. I got into it because I had gains from stock options. This saved my life
@@cakujuo how? If you have stock gains in 2021, you are saving 10% on those in 6 years plus the gain in your investment value. It seems like a good option for Long Term.
People should be pushing for an expansion of OZ’s. In fact, I would love it if you could invest capital gains and maybe even a portion of your taxable income into an OZ and not have to pay any taxes on that gain/income. Instead taxes should be paid only to future gains/income made on an investment that was funded with OZ money.
What if you don't have any capital gains? Does that mean you broke...
This is a great policy. I don't see why any side of the political spectrum wouldn't want to implement this policy.
the video image is too poor, you need to fix it more
Such a nice face. Good looking smile.
Is this gentrification by another name?
No capital gains taxes in new world.
OZ
Thank you Trump!
In Fayette Alabama there are two great opportunities for opportunity fund investors. A historic, downtown hotel and aircraft hangars at the airport. Both properties are in Opportunity Zones and will meet the criteria of substantial Improvement or Ground Up building. Email me if you have funds that need a home. These projects are promoted by the City and the Fayette Area Community Development Corp. You can see the overall project within which these projects fall at growingfayette.com Contact details are on that website.
not much on ground up
This is really bad for American freedom. The ESG score applies to this. The smart home and the internet of things is linked to the new social credit score system for America. Like the one being implemented in China today. The Smart cities and new smart home zoning laws are very very bad for new home and property ownership. Damn people.
Trump 2020
Substantial improvements suck!
I don’t understand any of this.😭⁉️😳🤷♀️
I think what he is explaining is a tax incentive that the White House is claiming is going to help POC in poor neighborhoods have more access to job development and investment in certain neighborhoods. This still only helps investors so it’s still ,from my opinion, trickle down economics.
@@brandontheoh3647 how can you say it "only helps investors?" if a vacant property is repurposed and both jobs and value is returned to the community thru investment, doesn't this help the community thru value, services, and jobs? doesn't this help create a better tax base for the city? doesn't the "new" attract new homeowners and businesses to the area? this program helps rebuild communities...its a win/win/win.
Dec 2026 is already here.
im not gay but this guy is handsome
「動画の音が良くない」、
広めてください」、
Trump2020
TRUMP 2020!!