As part of last year's Tax Act, there is a new way that investors can use their money to minimize taxes and invest in real estate. Opportunity zones have been created around the country, and there are 72 of them in Connecticut, with 7 of those in New Haven, 7 in Bridgeport, and 10 in Hartford. People can substantially rehab or build new structures in those zones--or even invest in operating businesses--and postpone taxes or even have them forgiven, under certain circumstances. Residential and commercial real estate are both covered. Much of the program is similar to the 1031 exchange option that has been around for years, but is broader, if the investment is in those particular census tracts.
We've been told that even accountants and lawyers may not be up to speed on this investment potential, because only recently have the zones been finalized. You can find the Connecticut interactive map on the www.ct.gov site. Because the rules are specific and unforgiving, it's best to check with tax professionals before buying, but looking can start immediately! It isn't that often that we have something so new to share, and we're glad that real estate is included.
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