Caveats to Investing in Opportunity Zones (Journal Article)

As part of the Tax Cuts and Jobs Act, Congress attempted to stimulate growth in economically depressed areas throughout the country by creating tax incentives for certain investments in state-nominated opportunity zones. However, for an investor to benefit from the tax incentives, the underlying investment needs to be viable and sustainable on its own. This article summarizes the opportunity zone tax incentives and discusses the risks and downsides to investing in a qualified opportunity fund.

Author:Michael W. Valenti, CPA, CFP, MAcc, discovered his love of high-net-worth individual tax planning and compliance while in the integrated masters of accounting program at Penn State. Michael now heads the in-house tax department for an independent RIA firm located in the western suburbs of Philadelphia.

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