September 25, 2019

Opportunity Zone Investments: Fool’s Gold or the Real Deal?

The investment community is abuzz about opportunity zones. Since the government introduced opportunity zone tax incentives to attract investment in economically-distressed communities, there has been a flurry of activity.  Pitches for Opportunity Zone investments tout tax breaks with a potential return above the stock market. But these deals require complex analysis of the underlying assets, how they fit in a portfolio, and where the tax savings really lie.


Following up on our recent workshop in Houston, Hirtle Callaghan’s whitepaper, “Whose Opportunity?”, brings this analysis together to demystify Opportunity Zones for investors, accountants, tax and estate attorneys, and real estate owners.


We examine the relative value of capital gains deferral, reduction, and elimination over different timeframes; compare these incentives to 1031 exchanges; and comment on headwinds to returns and staying compliant with the Opportunity Zone program.


Read further to learn more about potential benefits and pitfalls, and the key questions to ask before committing capital to an Opportunity Zone investment.  Please contact us for a full copy of the paper.