On June 5th, ULI SE Florida/Caribbean and Bilzin Sumberg hosted the South Florida Opportunity Zone Forum. Attendees gained valuable insights into the forces shaping our industry and were the first to hear about the results from our recent South Florida Opportunity Zone survey while networking with the people making the most important opportunity zone deals.
The Forum touched on topics including: strategies to unlock transformative economic potential and create lasting change in South Florida’s blighted neighborhoods; IRS and Florida’s legislation as it pertains to the governance of Opportunity Zones and related investment issues; the greatest benefits and obstacles for investing in an Opportunity Zone; and which asset classes are most ripe for development on OZ legislation.
About Opportunity Zones
The Opportunity Zone rules promulgated in December 2017 offer investors significant tax benefits for investments in certain low-income communities. Investments in Opportunity Zones receive three primary tax benefits. First, taxpayers can elect to defer capital gains by investing them in qualified Opportunity Zone funds within 180 days of recognition of the gain. If the taxpayer maintains its investment in the fund, this gain will become payable in 2026. Second, subject to certain timing requirements, the underlying basis of the original capital gain will receive a 10% step-up after the taxpayer holds the gain in the fund for 5 years, and an additional 5% step-up if the taxpayer holds the gain in the fund for 7 years. Finally, if the taxpayer maintains its investment in the fund for 10 years, the taxpayer will receive a step-up in basis equal to the fair market value of the investment.