Florida has designated Opportunity Zones that offers tax benefits to investors. Below are the areas in Hillsborough and Pinellas counties that are of interest to us. Please see the article Benefits to Investors in OpZones.
While these capital gains tax breaks do help to encourage investment, many investors may still shy away from investing in these opportunity zones, as they are similar to enterprise zones. If a neighbor is in poverty and economically depressed, the property may go into further disrepair and not utilized.
We feel like this Tax Break that was enacted by President Trump in December 2017 was written for us. Our business model is to go into economically depressed areas. The identified Opportunity Zones become our target areas for the Ubuntu Villages. Real Estate investors can now partner with us by purchasing a property and putting it into a Real Estate Trust with Ubuntu Innovations. We agree to a buy-out price for 2026 that allows for 0% capital gains on the profits of the sale of the building. Our ventures would be occupying 100% of the real estate, generating income that covers the installment payments.
With the deferment and reduction of capital gains, investors who liquidated assets to purchase property in an Opportunity Zone will gain immediate benefits to participation in our rejuvenating development.