There's been a lot of talk this year about Opportunity Zones and a new way to reinvest funds that would have normally been paid towards capital gains taxes in real estate in low income zones designated "opportunity zones." If you are an investor looking to invest in Pensacola area real estate, you may be interested to learn more about Opportunity Zones.
The Tax Cuts and Jobs Act of 2017 in conjunction with the Internal Revenue Code Section 1400Z provides new tax incentives in the way of exchanging capital gains if reinvested and held in accordance to the rules outlined. This rule applies until 2026. We're surely not CPA's and this topic digs quite deep into tax code so always consult your tax professionals before moving forward with an investment plan that involves significant tax implications.
HUD has now created a website with information to further explain Opportunity Zones. Visit it here as it applies for the entire U.S. and not just the Pensacola area. https://opportunityzones.hud.gov/ and includes a map to show certified opportunity zones. The Florida Department of Economic Opportunity also has a variety of information about Opportunity Zones on their website here.
In Pensacola, there are limited zones identified as Opportunity Zones and includes 5 small areas in Pensacola, a portion of Milton, Florida and most of the city of Century, Florida.
- East of Interstate 10 from Baars Street north to Royce Street
- A section between Fairfield Drive and Beverly Parkway west of Palafox St.
- A section both north and south of W Cervantes St.
- An area next to Corry Station including New Warrington
- An area west of Palafox Street to P St.