{"id":3080,"date":"2022-04-03T13:36:03","date_gmt":"2022-04-03T17:36:03","guid":{"rendered":"https:\/\/myhlaw.com\/?p=3080"},"modified":"2024-06-05T16:21:32","modified_gmt":"2024-06-05T20:21:32","slug":"real-estate-investment-what-money-qualifies-for-an-opportunity-zone","status":"publish","type":"post","link":"https:\/\/myhlaw.com\/es\/real-estate-investment-what-money-qualifies-for-an-opportunity-zone\/","title":{"rendered":"REAL ESTATE INVESTMENT: Funds that Qualify for an Opportunity Zone"},"content":{"rendered":"<h4>The <a href=\"https:\/\/myhlaw.com\/es\/real-estate-investment-qualified-opportunity-zone-fund\/\">Qualified Opportunity Zone Fund<\/a> program offers some incredible incentives for all <a href=\"https:\/\/myhlaw.com\/es\/real-estate-investment-who-can-invest-in-an-opportunity-zone\/\">investors<\/a>.\u00a0 But, there are limitations to the <em>kind<\/em> of money that qualifies for the special tax treatment.<\/h4>\n<p>The good news is that, for purposes of a QF, what is considered \u00abcapital gains\u00bb is not just proceeds from the sale of real estate.\u00a0 In fact, all of the following are qualified capital gains:In order to get the tax advantages available under the Opportunity Zone program, you have to invest \u00abqualified capital gains.\u00bb\u00a0 So, it is not just any kind of money that can be invested in a Qualified Fund (QF).\u00a0 For example, if you have put away some cash from your regular salary or other compensation, that money will not qualify for the tax benefits because it is not \u00ab<a href=\"https:\/\/www.bankrate.com\/glossary\/c\/capital-gains\/\">capital gains<\/a>.\u00bb<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sale of Real Estate<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Sale of stocks and bonds<\/span><\/li>\n<li>Sale of shares in a corporation<\/li>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Sale of a partnership interest<a href=\"https:\/\/myhlaw.com\/es\/real-estate-investment-what-money-qualifies-for-an-opportunity-zone\/oz-legend_001\/\" rel=\"attachment wp-att-3091\"><img decoding=\"async\" class=\"size-full wp-image-3091 alignright\" src=\"https:\/\/myhlaw.com\/wp-content\/uploads\/2022\/04\/OZ-Legend_001-1.jpg\" alt=\"\" width=\"247\" height=\"235\" \/><\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sale of cryptocurrency\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Sale of REIT<\/span><\/li>\n<li aria-level=\"1\">Sale of land<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sale of machinery<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sale of timber and other natural resources<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sale of unharvested crops and livestock<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gains from leaseholds (at least 1 year old)<\/span><\/li>\n<\/ul>\n<p>So, as long as the funds you intend to invest can be defined as \u00ab<a href=\"https:\/\/www.investopedia.com\/terms\/c\/capital_gains_tax.asp\">capital gains<\/a>,\u00bb you can invest in a QF and receive the very advantageous tax benefits of the Qualified Opportunity Zone program.\u00a0 That is one significant advantage of a QF over the traditional 1031 exchange.<\/p>\n<p>See our related articles for more on how to take advantage of the Qualified Opportunity Zone program:<\/p>\n<ul>\n<li>What are the <a href=\"https:\/\/myhlaw.com\/es\/real-estate-investment-qualified-opportunity-zone-fund\/\">benefits<\/a> of a QF?<\/li>\n<li><a href=\"https:\/\/myhlaw.com\/es\/real-estate-investment-who-can-invest-in-an-opportunity-zone\/\">Who<\/a> can invest in a QF?<\/li>\n<li>What kind of <a href=\"https:\/\/myhlaw.com\/es\/real-estate-investment-opportunity-zone-projects\/\">projects<\/a> are in an Opportunity Zone?<\/li>\n<li>What is the risk analysis for a QF?<\/li>\n<li>How does a <a href=\"https:\/\/myhlaw.com\/es\/real-estate-investment-opportunity-zone-vs-1031-exchange\/\">QF compare with a 1031 Exchange<\/a>?<\/li>\n<li>Where do I find a QF to invest in?<\/li>\n<\/ul>\n<p style=\"padding-left: 280px;\">~ <a href=\"https:\/\/myhla.wpengine.com\/attorneys\/jeffrey-harrington-esq\/\">Jeff Harrington, Esq.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Qualified Opportunity Zone Fund program offers some incredible incentives for all investors.\u00a0 But, there are limitations to the kind of money that qualifies for the special tax treatment.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":2989,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[290,322],"tags":[481,472,479],"class_list":["post-3080","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investment","category-impuestos","tag-funds-for-opportunity-zone-fund","tag-qualified-opportunity-zone","tag-qualified-opportunity-zone-fund"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/myhlaw.com\/es\/wp-json\/wp\/v2\/posts\/3080","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/myhlaw.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myhlaw.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/myhlaw.com\/es\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/myhlaw.com\/es\/wp-json\/wp\/v2\/comments?post=3080"}],"version-history":[{"count":0,"href":"https:\/\/myhlaw.com\/es\/wp-json\/wp\/v2\/posts\/3080\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/myhlaw.com\/es\/wp-json\/wp\/v2\/media\/2989"}],"wp:attachment":[{"href":"https:\/\/myhlaw.com\/es\/wp-json\/wp\/v2\/media?parent=3080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myhlaw.com\/es\/wp-json\/wp\/v2\/categories?post=3080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myhlaw.com\/es\/wp-json\/wp\/v2\/tags?post=3080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}