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What Is Opportunity Zone Investing, and How Can You Benefit in Indiana?

February 3, 2025

Opportunity Zone investing is one of the best-kept secrets in commercial real estate. If you’re looking for a way to grow your wealth while also benefiting from significant tax incentives, this investment strategy might be for you—especially in Indiana, where growth opportunities abound.

What Are Opportunity Zones?

Created under the 2017 Tax Cuts and Jobs Act, Opportunity Zones are designated areas across the U.S. where investors can receive tax breaks for funding economic development. Indiana has over 150 Opportunity Zones, including areas in Indianapolis, Fort Wayne, and Gary, making it a prime location for investment.

How Does Opportunity Zone Investing Work?

  1. Invest in a Qualified Opportunity Fund (QOF): Instead of directly buying property, investors place capital gains into a QOF, which then funds projects in designated Opportunity Zones.
  2. Defer Capital Gains Taxes: By rolling over capital gains into a QOF, you can defer taxes until 2026.
  3. Reduce Tax Liabilities: If you hold the investment for at least five years, you can receive a 10% step-up in basis. Holding for seven years increases it to 15%.
  4. Eliminate Taxes on Gains: If you keep the investment for 10+ years, any additional gains on the Opportunity Zone investment are completely tax-free.

Why Invest in Indiana’s Opportunity Zones?

  • High Growth Potential: Many Opportunity Zones in Indiana are in up-and-coming areas with increasing demand for commercial and residential developments.
  • Government Support: Indiana’s pro-business policies and incentives make it an attractive place for investors.
  • Diverse Investment Options: From industrial properties to mixed-use developments, there’s a wide range of opportunities.

Ready to Invest?

Opportunity Zone investing isn’t just a tax break—it’s a chance to be part of Indiana’s economic growth. If you’re ready to explore how Opportunity Zones can work for you, let’s connect and make your next real estate investment a smart one!

Photo by Shai Pal on Unsplash

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