Re:How to have a billion dollar exit with zero capital gains...
by more_corn on Tuesday May 10, 2022 @10:19AM
(#31327447)
I really think the opportunity zones were created for precisely the purposes described in the article. We’ve made a strategic decision to forego taxes in certain areas in order to incentivize investment in poor (traditionally minority) areas. The rules were created specifically so that people would use them.
It would rise to the level of cheating if you abuse the rules. Investing in an opportunity zone, starting a business there, improving property, employing people, re-investing there. These are all the intended effects of opportunity zones.
It seems like an awesome loophole, but it’s not. The hole was put there deliberately. It’s meant to be used.
If you’re curious, take a tour of your nearest opportunity zone. Imagine starting a business there. Imagine your employees shopping at the bodega on the corner, grabbing lunch on the street, using the run-down auto repair shop because it’s convenient. If you’re willing to locate your business in an area we’ve decided we want revitalized you can realize tax benefits. But there’s some risk, so do it with open eyes.
It would rise to the level of cheating if you abuse the rules. Investing in an opportunity zone, starting a business there, improving property, employing people, re-investing there. These are all the intended effects of opportunity zones.
It seems like an awesome loophole, but it’s not. The hole was put there deliberately. It’s meant to be used.
If you’re curious, take a tour of your nearest opportunity zone. Imagine starting a business there. Imagine your employees shopping at the bodega on the corner, grabbing lunch on the street, using the run-down auto repair shop because it’s convenient. If you’re willing to locate your business in an area we’ve decided we want revitalized you can realize tax benefits. But there’s some risk, so do it with open eyes.