Stacked with financial incentives
QOZ
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QUALIFIED OPPORTUNITY ZONES
The Sugar Apple B&B is located in a Qualified Opportunity Zone (QOZ). There are substantial tax benefits available to many investors in a QOZ.
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To learn more about QOZ in the US Virgin Islands check out this presentation from the Research and Technology Park of the University of the Virgin Islands.
1031
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TAX DEFERRED EXCHANGE
Many real estate investors are familiar with 1031 tax deferred exchanges where they can sell one real estate investment property at a profit but defer taxes on the gains by reinvesting that money into another real estate investment. But most real estate investors are not aware that you can sell property in any U.S. state and then buy property in the U.S. Virgin Islands and still qualify for a 1031 exchange!
When you sell your investment property to buy this hotel, you may be required to pay a capital gains tax on your profits at either a short-term or long-term capital gains rate. Instead, you can reinvest profits from the sale in a like-kind property of the same or greater value. To find out if your sale and purchase qualify, consult with your tax advisor.
ENTERPRIsE ZONE
TAX INCENTIVES
This bed & breakfast is located in the Christiansted Enterprise Zone.
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Below are some of the benefits your business can reap if eligible for the EZC tax incentive program:
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90% reduction in corporate income tax
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90% reduction in personal income tax
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100% exemption on gross receipt tax
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100% exemption on business property tax