Created by President Trump’s Tax Cuts and Jobs Act of 2017, Opportunity Zones are designed to spur economic development and job growth across the country. As a result, Cape Coral Opportunity Zones were created.
Benefits of investing in Cape Coral Opportunity Zones
- The temporary deferral of taxes on previously earned capital gains is helpful.
- Next, the basis step-up of previously earned capital gains invested.
- Finally, There is the permanent exclusion of taxable gain on new gains. For investments held for at least 10 years, investors pay no taxes on any capital gains produced through their investment in Opportunity Funds (the investment vehicle that invests in Opportunity Zones).
Cape Coral has 3 census tracts included in the Opportunity Zones: 10201, 10302, and 10307. The Cape Coal units affected are all or part of 16,17,23,27,34,35,36-1,37,38,39,40,46.
The Cape Coral Opportunity Zone is approximately 12.19 square miles, with about 8,900 vacant parcels totaling just over 2,750 acres. Approximately 2300 of those parcels currently have zoning that allows for multi-family, commercial, or professional uses.
Equally important, the opportunity zones in Cape Coral have a combined population of 27,000, which represents 14% of the city’s total population. The median household income for these areas ranges from approximately $48,000 to $62,000.
Many of the build-to-rent investors buying in Cape Coral have targeted the Opportunity Zone area to build their portfolios. Holding for 10 years and selling without paying capital gains tax is very attractive to investors. Demand for these areas should remain steady.
Furthermore, in just 2022 alone, we have bought and sold over 100 lots in local Opportunity Zones.
We are very familiar with the real estate market in Cape Coral and have the knowledge, experience, and results. If you are looking to buy in the Cape Coral Opportunity Zone or have any more questions, feel free to give us a call.