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Tax Advantages

  • Tax Advantages

TAX ADVANTAGES

INVESTING IN OPPORTUNITY ZONE FUNDS

DEFER AND REDUCE CAPITAL GAINS TAX

INVEST YOUR CAPITAL IN OPPORTUNITY ZONE PROJECTS

Take advantage of new tax incentives to investors who invest their unrealized capital gains in Qualified Opportunity Funds. These investments include real estate and business projects located in federally recognized Opportunity Zones. These tax incentives include:

  • Temporary tax deferral until 2026
  • A step-up in basis
  • Avoidance of capital gains for investments owned for 10 years or more

BENEFITS

OF ROLLING CAPITAL GAINS INTO AN OPPORTUNITY ZONE FUND

  • Defer the payment of your capital gains tax.
  • Reduce the tax you owe by up to 15% after 7 years.
  • Eliminate tax on gains earned from the Opportunity Zone Fund after 10 years.

WHAT ARE OPPORTUNITY ZONES?

LOW INCOME CENSUS TRACTS WITH TAX INCENTIVE INVESTMENT OPPORTUNITIES

The Opportunity Zone program is part of the federal Tax Cuts and Jobs Act of 2017, signed into law on Dec. 22, 2017. Opportunity Zones are designated low income census tracts. Governors can designate up to 25 percent of their state’s low-income census tracts as Opportunity Zones.

This new law incentivizes real estate and business investment in these Opportunity Zones. Investors are able to defer and reduce taxes on their capital gains by investing in Qualified Opportunity Funds that in turn are invested in designated Opportunity Zones.