Opportunity Zone Magazine Opportunity Zone Magazine Volume 1, Issue 1 | Page 69
POTENTIAL STATE PITFALLS: WHY CHOOSING YOUR INVESTMENT LOCATION IS IMPERATIVE
Potential State Pitfalls:
Why Choosing
Your Investment Location
is Imperative
By Blake Christian
Even though all states have Opportunity Zones, the program allows each state to choose to adapt
to its federal provisions. Currently, 31 states and the District of Columbia conform to the federal program,
which means participants have many issues to consider to optimize their investments.
O
ne of the most powerful federal tax provisions in
decades became law in 2018, yet the vast majority
of the investor and business world has only recently
become aware of the full potential of the Opportunity Zone
(OZ) program.
The OZ program has wide application and benefits to
participants similar to Internal Revenue Code (IRC)
Section 1031/ “Like Kind Exchanges” tax deferral, as well
as permanent tax-free build up for a portion of future gains,
similar to Roth IRAs.
The majority of information in the press has focused on the
OZ program’s benefits for real estate developers; however, the
program also lends itself to investors and serial entrepreneurs
who start-up or expand businesses in one of the approximate
8,700 eligible Opportunity Zones.
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