Four Reasons to Tap Opportunity Zones Before They Expire

As a provision in the Tax Cuts and Jobs Act, opportunity zones could sunset at the end of 2026, but there’s still time to maximize major tax benefits.

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We’ve covered investments in opportunity zones, a hot topic in the world of real estate investing since their introduction in 2017, many times in this space. These designated zones, created by the Tax Cuts and Jobs Act, were designed to spur economic development and job creation in specific communities and census tract areas, while simultaneously providing substantial tax incentives for investors.

However, with some provisions in the Tax Cuts and Jobs Act (and therefore opportunity zones themselves) set to expire less than three years from now, many are wondering what the future holds for this investment opportunity and, more specifically, whether it’s a good place for a new investment in 2024. The short answer: While investors have only a few short years to act before the program phases out, there is still a strong case to be made for a QOZ investment, despite — and perhaps even because of — the looming expiration date.

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Daniel Goodwin
Chief Investment Strategist, Provident Wealth Advisors

Daniel Goodwin is a Kiplinger's contributor on various financial planning topics and has also been featured in U.S. News and World Report, FOX 26 News, Business Management Daily and BankRate Inc. He is the author of the book Live Smart - Retire Rich and is the Masterclass Instructor of a 1031 DST Masterclass at Daniel regularly gives back to his community by serving as a mentor at the Sam Houston State University College of Business. He is the Chief Investment Strategist at Provident Wealth Advisors, a Registered Investment Advisory firm in The Woodlands, Texas. Daniel's professional licenses include Series 65, 6, 63 and 22. Daniel’s gift is making the complex simple and encouraging families to take actionable steps today to pursue their financial goals of tomorrow.