The Opportunity Zones program has undergone a major transformation with new legislation that permanently extends and enhances this powerful tax deferral strategy. High net worth investors and real estate professionals should understand these changes to maximize their tax benefits and investment returns. In the latest episode of Peachtree Point of View, Peachtree Group CEO Greg Friedman sits down with Jason Watkins, partner at Novogradac and Opportunity Zones expert, to break down recent game-changing legislation.
With the new legislation signed into law on July 4, 2025,Opportunity Zones became permanent. Unlike the original program's limited timeline, OZ 2.0 creates rolling 10-year cycles with new zone designations every decade, giving investors the confidence to use this as a long-term tax planning tool rather than a one-time opportunity.
In the new version of the law, there is a critical timing consideration that investors should understand. The new five-year deferral benefit, where every investor gets five years to defer capital gains taxes regardless of when they invest, only applies to investments made after December 31, 2026. Current investors are still locked into the 2026 recognition date, making strategic timing crucial for tax planning.
Here's where savvy investors can maximize their tax advantages: investments in rural Opportunity Zones now receive a 30% basis step-up compared to just 10% for standard zones. This represents a massive tax incentive that could redirect capital flows and create significant opportunities for investors willing to explore rural markets.
The new law tightens eligibility criteria from 80% to 70% of median family income, potentially reducing the total number of Opportunity. Zones by approximately 20%, from 8,764 to about 7,000 zones nationwide. This reduction means increased competition for quality investment opportunities.
With commercial real estate values down an average of 20% from their peak and some sectors like office down 40% or more, the timing and structure of this correction could create compelling investment opportunities.
Don't miss the full conversation where Jason and Greg dive deeper into implementation timelines, rural zone definitions, and specific strategies for maximizing these benefits.
Listen to the complete episode of Peachtree Point of View on your favorite podcast platform and subscribe for regular updates on investment opportunities, market trends, and strategies that help sophisticated investors optimize their portfolios.
Please note that this podcast does not provide legal or tax advice. Before investing in any tax-advantaged program, consult with your CPA or a tax attorney to ensure you are eligible to benefit from the program's tax advantages.
The Opportunity Zones program has undergone a major transformation with new legislation that permanently extends and enhances this powerful tax deferral strategy. High net worth investors and real estate professionals should understand these changes to maximize their tax benefits and investment returns. In the latest episode of Peachtree Point of View, Peachtree Group CEO Greg Friedman sits down with Jason Watkins, partner at Novogradac and Opportunity Zones expert, to break down recent game-changing legislation.
With the new legislation signed into law on July 4, 2025,Opportunity Zones became permanent. Unlike the original program's limited timeline, OZ 2.0 creates rolling 10-year cycles with new zone designations every decade, giving investors the confidence to use this as a long-term tax planning tool rather than a one-time opportunity.
In the new version of the law, there is a critical timing consideration that investors should understand. The new five-year deferral benefit, where every investor gets five years to defer capital gains taxes regardless of when they invest, only applies to investments made after December 31, 2026. Current investors are still locked into the 2026 recognition date, making strategic timing crucial for tax planning.
Here's where savvy investors can maximize their tax advantages: investments in rural Opportunity Zones now receive a 30% basis step-up compared to just 10% for standard zones. This represents a massive tax incentive that could redirect capital flows and create significant opportunities for investors willing to explore rural markets.
The new law tightens eligibility criteria from 80% to 70% of median family income, potentially reducing the total number of Opportunity. Zones by approximately 20%, from 8,764 to about 7,000 zones nationwide. This reduction means increased competition for quality investment opportunities.
With commercial real estate values down an average of 20% from their peak and some sectors like office down 40% or more, the timing and structure of this correction could create compelling investment opportunities.
Don't miss the full conversation where Jason and Greg dive deeper into implementation timelines, rural zone definitions, and specific strategies for maximizing these benefits.
Listen to the complete episode of Peachtree Point of View on your favorite podcast platform and subscribe for regular updates on investment opportunities, market trends, and strategies that help sophisticated investors optimize their portfolios.
Please note that this podcast does not provide legal or tax advice. Before investing in any tax-advantaged program, consult with your CPA or a tax attorney to ensure you are eligible to benefit from the program's tax advantages.