ELI5: How to make money in Opportunity Zones?
The EIG website seems to explain it in terms of stock portfolios... How do CRE developers/investors make money in these zones?

Thanks!
[{"id": "e0mcrtb", "text": "I'm not sure specifically what you're referencing but a \"qualified opportunity zone\" as defined under the recent tax law, is effectively like a 1031 exchange \u201czone\u201d but also protects future capital gains via stepping up the owners basis on a graduated basis based on the number of years invested in the property.\n\nHere's a link that explains it much more eliquently than Mr. Two thumbs (i.e. me):\n\n[https://www.gtlaw.com/en/insights/2018/1/qualified\\-opportunity\\-zones\\-and\\-tax\\-credit\\-incentives\\-under\\-the\\-tax\\-cuts\\-and\\-jobs\\-act](https://www.gtlaw.com/en/insights/2018/1/qualified-opportunity-zones-and-tax-credit-incentives-under-the-tax-cuts-and-jobs-act)", "replies": [{"id": "e0nvj4q", "text": "What you\u2019re talking about is exactly what OP is referencing. People are going crazy about this. So thanks. ", "replies": [], "depth": 2}, {"id": "hp2ra2z", "text": "Can you explain this to me like I\u2019m 5. Sorry new to real estate, I\u2019m buying a trailer park in an opportunity zone and don\u2019t understand how that \u2018zone\u2019 benefits me. Please, and Thank you", "replies": [], "depth": 2}], "depth": 1}, {"id": "e0n2hzf", "text": "Subbed to follow", "replies": [], "depth": 1}, {"id": "e0n8mbu", "text": "RemindMe! 3 days", "replies": [{"id": "e0n8mif", "text": "I will be messaging you on [**2018-06-17 05:18:42 UTC**](http://www.wolframalpha.com/input/?i=2018-06-17 05:18:42 UTC To Local Time) to remind you of [**this link.**](https://www.reddit.com/r/CommercialRealEstate/comments/8qvbf1/eli5_how_to_make_money_in_opportunity_zones/)\n\n[**CLICK THIS LINK**](http://np.reddit.com/message/compose/?to=RemindMeBot&amp;subject=Reminder&amp;message=[https://www.reddit.com/r/CommercialRealEstate/comments/8qvbf1/eli5_how_to_make_money_in_opportunity_zones/]%0A%0ARemindMe!  3 days) to send a PM to also be reminded and to reduce spam.\n\n^(Parent commenter can ) [^(delete this message to hide from others.)](http://np.reddit.com/message/compose/?to=RemindMeBot&amp;subject=Delete Comment&amp;message=Delete! e0n8mif)\n\n_____\n\n|[^(FAQs)](http://np.reddit.com/r/RemindMeBot/comments/24duzp/remindmebot_info/)|[^(Custom)](http://np.reddit.com/message/compose/?to=RemindMeBot&amp;subject=Reminder&amp;message=[LINK INSIDE SQUARE BRACKETS else default to FAQs]%0A%0ANOTE: Don't forget to add the time options after the command.%0A%0ARemindMe!)|[^(Your Reminders)](http://np.reddit.com/message/compose/?to=RemindMeBot&amp;subject=List Of Reminders&amp;message=MyReminders!)|[^(Feedback)](http://np.reddit.com/message/compose/?to=RemindMeBotWrangler&amp;subject=Feedback)|[^(Code)](https://github.com/SIlver--/remindmebot-reddit)|[^(Browser Extensions)](https://np.reddit.com/r/RemindMeBot/comments/4kldad/remindmebot_extensions/)\n|-|-|-|-|-|-|", "replies": [], "depth": 2}], "depth": 1}, {"id": "e0ntzzh", "text": "Caveat all the following with I'm not an attorney/accountant and do your own research, consult your own experts etc...\n\nYou're not going to \"make money\" just because you're doing development in an opportunity zone.\n\nThey're set up as a 1031 on steroids of sorts - you can contribute gain from other appreciated assets into an Qualified Opportunity Fund and defer tax consequences on that gain until the assets purchased in the fund are sold or 2026 (roughly). It offers a step up in basis of up to 15%, further reducing the tax consequences of that gain, depending on how long you hold the assets in the fund.\n\nIf you hold the assets in the fund for 10yrs+, then the basis at sale resets to the full market value. Essentially all gains made from the property purchased by the Fund in the Zone could be tax free.\n\nSo it's not a way to \"make money\" per se, but it is a way to massively defer capital gains taxes, and possibly reduce/eliminate gains on the investments the fund makes.\n\nThere are provisions in there around having to increase the basis by the original basis of the acquired business property - i.e. if you buy a piece of land or a building for $5M, you need to put another $5M of improvements into it within 30 months of acquisition. So just buying and holding is out.\n\n", "replies": [], "depth": 1}]