RPP – Opportunity Zones with Matt Rappaport
Matt Rappaport, Esq., LLM is the Vice Managing Partner of Falcon Rappaport & Berkman PLLC. His primary focuses on tax planning, deal structuring, generational wealth planning, and all the complexities within real estate. On this episode, Matt discusses the power and flexibility of the 1031 exchange for syndications.Key Information:
- Opportunity Zone is an incentive for private capital to invest in economic disadvantage areas
- Can find Opportunity Zones with CDFI Map
- Opportunity Zones are a good investment if you:
- Capital Gains from a sale to an unrelated party
- You want to invest only the capital gain, not the entire principal of your original investment
- Weigh out 1031 vs Opportunity Zone as tax deferral
- Trust capital with sponsor
- Understand you have lack of liquidity for 10 years
- Capital Gains from a sale to an unrelated party
- Opportunity zones delay the taxation of the deferred capital gain which is the investment into the property
- Opportunity Zones differ from 1031s because
- You can sell any asset type to get into Opportunity Zone
- Opportunity Funds can invest in:
- Real Estate (major rehab or development)
- Not turnkey
- Starting a business headquartered or mainly operates in an opportunity zone
- Real Estate (major rehab or development)