Puerto Rico was announced as Federal Opportunity Zone by Governor Rosello on April 18, 2018
What is a designated Opportunity Zone?
An Opportunity Zone (OZ) is a community or region that has meet the specific criteria as an economically-distressed zone and has been designated elegible for preferential tax treatment. These opportunity zones localities have been submitted for nomination by the state, and such has been certified by the Secretary of the U.S. Tresury.
Opportunity Zones where added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017, and are an economic development incentive with the purpose of investment, business and job creation in distressed communities. Qualifiying investments in OZ must be acquired after December 31, 2017.
What does this mean to Puerto Rico?
The Governor of Puerto Rico expects that these incentives to inject million $ in new investments into the island's economy.
Puerto Rico Beach Properties hopes for a significant increase in small and medium size business creation and the creation of employment to support these new enterprises and investments. The creations of these new enterprises, will have a trickle effect in the overall island's economy, culminating in a significant reduction of Federal Government economic social engineering programs.
What does this mean to investors?
- While contributing to the quality of life of others, investors are permited to minimize and defer capital gain taxes while generating an ROI as high as 20%.
- Reinvesting the gains, versus the entire proceeds from the sale of an asset, investors benefit from tax incentives.
- Real estate, stocks and bonds, and other investment instruments where the investor has gains from the sale of a capital asset, can be rolled into an Opportunity Zone investment.
Examples of Opportunity Zone investments include:
- OZ Real Estate: The acquisition of real estate, and renovating this real estate. depending on the hold period the investor can get up to 100% deduction on capital gains when the asset is sold.
- OZ Stock: Investing in stock of a domestic corporation that is a qualified opportunity zone business.
- OZ Partnership: Investing in a domestic partnership that is a qualified opportunity zone business.
The Bonus of Investing in Puerto Rico:
- Awesome weather, Puerto Rico has been a perenial vacation destination.
- No passport required.
- Nearby, a short hop. New York to San Juan is easier than, New York to Los Angeles.
- Our people, a well educated work force.
- Beach or Mountains, you choose.
- Act 20 / 22 benefits
- Puerto Rico is a Commonwealth of the US.
- Goods and services similar to the United States
- Our own special and unique culture, a blend of Latin America with the US.
DISCLAIMER: Puerto Rico Beach Properties is not a finantial advisor, legal counsel or CPA. The above is a consolidation of information publicly obtained for informative purposes. We recommend the investor to contact the proper professional for specific and detailed advice.
Puerto Rico Beach Properties is not affiliated to any of the following agencies, news sources or service providers. This is just a short list of resourses we found valuable to the investor.
US DEPARTMENT OF TREASURY / OPPORTUNITY ZONE RESOURCES