Opportunity Zones Explained
Learn how Qualified Opportunity Zones work, the tax benefits for investors, and why Austin's 21 OZ tracts offer compelling real estate investment opportunities.
The Opportunity Zone program was created by the Tax Cuts and Jobs Act of 2017 to encourage long-term investment in economically distressed communities. Investors who reinvest capital gains into a Qualified Opportunity Fund (QOF) can access significant federal tax benefits while supporting development in underserved areas.
Key Tax Benefits
- Deferral: Defer capital gains tax by investing in a QOF within 180 days of a sale.
- Reduction: Exclude 10% of deferred gains after a 5-year hold, and 15% after 7 years (for qualifying investments).
- Tax-free appreciation: Pay no tax on gains from the OZ investment itself if held at least 10 years.
Austin's 21 Opportunity Zones
Austin, Texas has 21 designated Opportunity Zone census tracts spanning East Austin, Montopolis, Parker Lane, Windsor Park, and surrounding areas. Liquid focuses development activity across these tracts — explore each on our tract directory or interactive map.
How Liquid Invests in OZs
Through Liquid QOF II and Liquid QOZB II, we acquire and entitle land, develop residential subdivisions, and build single-family and multifamily housing. See our active project portfolio.
Is an OZ Fund Right for You?
OZ investing suits accredited investors with recent capital gains who want tax-advantaged exposure to real estate. Compare with a 1031 exchange or fixed-income bonds, or speak with our team to evaluate your options.