Opportunity zones are becoming a popular investment opportunity for many people. They were created in the Tax Cuts and Jobs Act of 2017. When a person invests in an opportunity zone, they receive opportunity zone tax benefits, which is why people are rushing to get involved. When investors rush, however, sometimes they make mistakes. One of the mistakes that people make is not investing in a qualified opportunity zone.
The first thing that we need to identify is what exactly are these zones. Opportunity zones are economically distressed areas. To qualify, the area has to have a median household income of $33,345 or less, poverty rate of at least 31.75%, and an unemployment rate of at least 13.41%. The benefit of investing in areas like this is that the businesses promote economic growth. This is why when someone doesn’t actually invest in a qualified opportunity zone, they won’t receive the benefits.
Although we now know some of the qualifications of these zones, some may find it easier to look at a qualified opportunity zones map. For example, maybe you want to make an investment in New York, but you’re not sure if the area qualifies as an opportunity zone. When this happens, you can search the address using the Census Bureau’s Geocoder tool to determine the census tract of the specific address. On this same page, you can look for other opportunity zone investments.
The last thing you want to do is invest a lot of money and not receive the opportunity zone tax benefits. To ensure that you follow all of the terms and conditions, you should consider hiring an opportunity zone attorney. Opportunity zone attorneys can help you to find a qualified opportunity zone, as well as fulfill all the necessary steps to receive benefits.
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