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WHAT BLACK INVESTORS NEED TO KNOW ABOUT OPPORTUNITY ZONES

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Black investors have historically invested in land to build wealth. Real estate is generally seen as a solid investment because property values typically rise over time. Property can be passed from one generation to another; used to diversify an investment portfolio; and is considered less risky than the stock market. Now, there is a new option for blacks to become investors and receive tax breaks with a new real estate asset class: Opportunity Zones.

Opportunity Zones are low-income areas the U.S. Treasury classifies as “qualified opportunity zones.” Investors can make these asset investments through Qualified Opportunity Funds.

The investments are geared to accelerate economic development in almost 9,000 designated areas in America and Puerto Rico, says tax attorney Steve Moskowitz, a founding member of the San Francisco-based tax law firm Moskowitz L.L.P.

Opportunity Zones were added as part of the 2017 Tax Cuts and Jobs Act. They allow investors to defer tax on any capital gains until 2026 and avoid a capital gains tax on the sale of an Opportunity Zone. Those funds are then invested in property and businesses located or operated within the designated QO Zones.

WHAT EXACTLY ARE OPPORTUNITY ZONES?

According to the Economic Innovation Group, the 2017 tax provision provides “a tax incentive for investors to re-invest their unrealized capital gains into dedicated Opportunity Funds.” African American Sen. Tim Scott (R-S.C.) played an integral part in including the zones in the tax law.

The ante is high as there is a massive amount of capital gains that could be invested in Opportunity Zones. Based on estimates that U.S. households and corporations possess over $6 trillion in unrealized capital gains, some officials contend that the program has great potential to trigger an influential change in distressed communities.

Even if a portion of that amount of money was committed, it could possibly mean billions of dollars for poor areas across the country. That is because the program is specifically designed to increase economic opportunity by incentivizing new development in low-income urban and rural areas, says Leslie Anderson, president and CEO of the New Jersey Redevelopment Authority (NJRA).

Read more @ Black Enterprise

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DMV & Radio Legend Tony Redz passed away | RIP Mr 24/7 Tony Redz💔

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The legendary DMV radio DJ and host Tony Redz Aka Mr. 24/7 passed away today (May 29) of a heart attack. The news regarding his death was confirmed by Redz’s former colleague and fellow radio host Sunni on Twitter. The tweet read, “Got a call from DJ Flexx that shattered my heart. Can’t believe our former colleague Tony Redz has passed away. Way too young. Prayers to his family. Unbelievable.”

Read full story HERE

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Magic Johnson’s Life Insurance Company Reportedly Funding $100 Million In Small Business Loans

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Former NBA all-star Magic Johnson told the Wall Street Journal that his life insurance company will provide $100 million in funding for small women and minority owned businesses as part of the Small Business Administration’s embattled Paycheck Protection Program.

Read full story at Forbes

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Fix Your Finances Series

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Fix Your Finances: a 12-part financial education series that runs on Mondays at 8pm ET (5pm PT)
We will be discussing: How to set up a budget that actually works and is easy to stay on / 7 ways to free up money that you might not have thought of.

The good, the bad and the ugly truth about debt.

  • How to teach your kids about money.
  • How to reduce costs and understand insurance.
  • How to choose the proper investments.
  • The best investment strategies to start now to create retirement income.

This is a FREE online series and you can join us from the comfort of your own home.
For more details or to REGISTER, visit bit.ly/fixyourfinances2020

NOTE: If you are unable to attend the event and would like to personally discuss how you can get prepared or be prepared for the future, please schedule an appointment at ProsperityMIX.com

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