Hotel Motel Brokers

Why Hotel Investors Should Be Using Opportunity Zones

The Opportunity Zones program may pose some limitations, but it brings seriously lucrative tax benefits to the table for hotel owners and investors who may have projects in the right location. With more and more investors thinking about taking advantage of the benefits brought on by the program, here’s why you should start giving serious thought to doing the same.

Deferral of Capital Gains

The program offers federal tax incentives that give current and potential investors huge gains. The possibility of getting your tax deferred on capital gains will mean ending up with substantial funds. That thought has many investors excited about taking part in the Opportunity Zones program. You can defer the taxes when you recognize the original capital gain until the date you sell off your investment in an Opportunity Fund or by the last day of the year 2026, depending on whichever option you go for first.

Discount on Capital Gains

If you hold your investment in the Opportunity Fund for at least about five years, then that is going to give you a ten percent discount in capital gains. If you take that further, though, and you hold the investment in the fund for seven years, then you will end up with a total of fifteen percent discount. That presents quite an attractive offer to many investors.

Exclusion of Tax

The exclusion of tax is one of the largest benefits with Opportunity Zones. If you continue owning your Opportunity Zone investment for ten years you will not owe any capital gains on the sale of the asset. That is going to mean absolute tax exclusion of your capital gain tax, which can amount to huge gains for many investors where the asset appreciates significantly over those ten years. This could translate to hundreds of thousands and even millions of dollars all free of capital gains tax.

What NewGen Advisory Can Do

These are just some of the reasons why you should take advantage of Opportunity Zones. That’s going to mean finding the right property or project, though. To make sure the property fits the criteria set out in the program, you’ll need to secure the services of an experienced broker. That’s where we come in. If you are interested in expanding your investment portfolio through this program and wish to explore all possible options to figure out the right one for you, contact us. Reach out to us today and talk to NewGen Advisory brokers to learn more about how you can get huge gains off opportunity zones.

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