On April 9,2018, the Governor of Puerto Rico announced that the United States Treasure Department and the Internal Revenue Service had designated Puerto Rico as an Opportunity Zone under the U.s. Tax Cuts and Jobs Act of 2017.
This designation seeks to encourage long-term investments in Puerto Rico in exchange for certain fiscal benefits.
U.S. Taxpayers may elect to defer paying tax on capital gains from the sale or exchange of property, if such capital gains are invested in a Qualified Opportunity Fund, which invests at least ninety (90%) percent of its assets in qualified zone properties.
Qualified Opportunity Zone Property:
Real Estate such as commercial real estate properties, multifamily residential, hospitality development, infrastructure investment, mixed-use development, renewable energy investment, small business development, workforce housing and many other.
Qualified Opportunity Zone Business:
Basically, any trade or business in which substantially all of the tangible property owned or leased by the taxpayer is qualified as an opportunity zone business property.
Most of Puerto Rico has been designated as Opportunity Zones with the some exceptions such as Condado and Dorado.
To determine whether a particular tract has been designated as a Qualified Opportunity Zone visit here.
Please consult your Tax Attorney for additional information regarding this Act.
Search Puerto Rico will be marketing these properties to Qualified Opportunity Funds. If you have a qualified property you may submit it Here.