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Ginger Watkins

Cameron, Texas Opportunity Zone Coverage

An Opportunity Zone is recent federal legislation designed to encourage investment in economically distressed areas.  Areas authorized as Opportunity Zones allow an investor to defer the capital gains tax.  If the investment is held for 5 years in a qualified opportunity fund the investor receives a 10% exclusion on the deferred capital gains.  It gets even better, hold the investment for 7 years or more and the exclusion goes from 10% to 15% of the deferred capital gains.  But wait there's more, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor is eligible for an increase in basis of the qualifying opportunity fund investment equal to its fair market value on the date that the qualifying opportunity fund investment is sold or exchanged.  For those interested in detailed on Opportunity Zones the IRS FAQ is very helpful.

In Cameron approximately 3/4 of the City is covered by an opportunity zone which is a great incentive for investment in Cameron.  What's the catch?  There really isn't one other than this program is authorized through December of 2026.  Thus, for an investor to receive the greatest benefit from the program investments need to be made by December of 2019. 

Cameron, Texas Opportunity Zone 2018