HighDrive NetworkHighDrive NetworkHighDrive NetworkHighDrive Network
  • Programs
    • The BusinessMakers
    • The EnergyMakers
    • HXTV
    • HealthMakers
    • BusinessMakers USA
    • Entrepreneur’s Playbook
    • Business Builders
    • Brandonomics
    • Women Mean Business
    • Biz Moments
  • About HighDrive
  • Contact

Opportunity Zone Tax Incentives

Entrepreneur's Playbook | Episode: 694 | Guests: Martin Euson | 0
The Opportunity Zone tax incentives are new this year and Houston has more than 100 local designations. Jen gets the details from Martin Euson, a director on the PKF Texas tax team.

Jen:  This is the PKF Texas Entrepreneur’s Playbook.  I’m Jen Lemanski and I’m here with Martin Euson, a Director on our tax team.  Martin, welcome back to the Playbook.

Martin:  Thanks Jen, I’m glad to be here.

Jen:  So I’ve heard a little bit about the Opportunity Zone Program, what is it?

Martin:  The Opportunity Zone Program is a new program that was created as a result of the Tax Cuts and Jobs Act that as we know was signed into law last December and the program is really aimed at encouraging private investment and development into areas that are historically distressed communities or low income communities across the United States.  And in exchange for that investors are given some pretty significant tax benefits.

Jen:  We’re in Houston, are there areas where we can feel the impact locally?

Martin:  Oh absolutely.  In Houston alone there are more than 100 Opportunity Zone designations.  If you look at a map of inside the Beltway, most of Downtown Houston has the Opportunity Zone designation and much of the area to the east of Downtown.  So more than 100 areas inside of Houston, across the state of Texas more than 600 areas were designated Opportunity Zones and so it should have a very significant impact at the local level.

Jen:  So Martin what kind of incentives exist for investment in these Opportunity Zones?

Martin:  So the incentive Jen really is a tax incentive.  Investors who invest in Opportunity Zones can benefit from three different types of tax incentives, the first one being deferral of gain from a recent sale or exchange transaction when that gain is reinvested into an Opportunity Zone area.  And that gain can be deferred as long as December 31 of 2026 and so that’s a pretty significant deferral just that length of time.  The second tax benefit comes from investors being able to eliminate up to 15% of the gain on the investment, or the gain that they’re reinvesting into a qualified Opportunity Zone.  And the third tax benefit that investors can receive is avoiding tax on the gain associate with the investment in the Opportunity Zone and avoid paying tax all together if the investment’s held for at least 10 years.

Jen:  So where can our viewers find out more information about where these Opportunity Zones are?

Martin:  The IRS website has put together a very comprehensive FAQ section that addresses a lot of questions associated with the program.  There’s also a map of the United States and it can be scaled down to Texas and down to Houston.

Jen:  Okay, perfect.

Martin:  That provides a lot of good information and as always viewers can go to the PKF Texas website for more information or connect with me directly on LinkedIn.

Jen:  Sounds good.  Now is there any specific industry that this impacts or it’s pretty much anybody can invest in these Opportunity Zones?

Martin:  There are some prohibited investments when you get into recreation and entertainment, things like that, and there are a lot of nuances that go along with it from a tax perspective and from the type of investment perspective, so the best thing to do would be either to check out the FAQ sections or to consult with your PKF tax advisor.

Jen:  Come talk to you.  All right, perfect.  We’ll get you back to talk a little bit more about it, sounds good?

Martin:  All right, thanks Jen.

Jen:  This has been another Thought Leader production brought to you by PKF Texas The Entrepreneur’s Playbook, tune in next week for another chapter.

brought to you by

Recent Entrepreneur's Playbook Episodes

Entering a Licensing Agreement - What to Know

Entering a Licensing Agreement – What t...

There are various nuances when you’re navigating a licensing agreement – the best terms, ...
Entrepreneur's Playbook
The Importance of GAAP Financial Statements

The Importance of GAAP Financial Statements

GAAP financial statements can help streamline the due diligence process for buyers and sellers ...
Entrepreneur's Playbook
Documentation for Your Donors' Charitable Contribution

Documentation for Your Donors’ Charitab...

Does your not-for-profit organization have generous donors? Make sure you’re providing the correct documentation ...
Entrepreneur's Playbook
Why Sell-Side Due Diligence Helps Sellers

Why Sell-Side Due Diligence Helps Sellers

Think of sell-side due diligence like car maintenance. We’re the mechanics taking a look ...
Entrepreneur's Playbook
Why Companies Should Have a Licensing Agreement

Why Companies Should Have a Licensing Agreeme...

Do you know the benefits of purchasing a licensing agreement for your company? How ...
Entrepreneur's Playbook
Why Business Owners Should Invest in an Audit

Why Business Owners Should Invest in an Audit

There is more to an audit than simply going through one. Other valuable things ...
Entrepreneur's Playbook
Load More Episodes Loading...
© HighDrive 2018-2019 | All Rights Reserved
  • About HighDrive
  • Charlotte, NC
  • Columbus Ohio
  • Contact HighDrive
  • Fort Lauderdale
  • HighDrive Network
  • HighDrive Programs
    • Biz Moments
    • Brandonomics
    • Business Builders
    • BusinessMakers USA
    • Entrepreneur’s Playbook
    • HealthMakers
    • HXTV
    • The BusinessMakers
    • The EnergyMakers
    • Women Mean Business
  • HighDrive Weekly
  • Indianapolis Indiana
  • Kansas City
  • Milwaukee
  • Nashville
  • Oklahoma City
  • Raleigh NC
  • San Antonio
  • Seattle
HighDrive Network