What is the Opportunity Zone Program?

On December 22nd, 2017 a new tax incentive program was enacted through the Federal Tax Cuts and Job Acts of 2017, to unlock 6 trillion dollars in unrealized capital gains and promote investments in real estate and businesses located in certain economically distressed communities known as Opportunity Zones.

 

If you have invested in stocks, real estate or other assets that have appreciated in value, historically you cannot sell those assets without paying huge taxes. Now by investing in a qualified Opportunity Fund you have the ability defer your capital gains tax, reduce through a 10-15% step up basis (depending on hold period) and even permanently exclude your investment fund gains from taxes.

 

What are Opportunity Zones?

Opportunity Zones are specific census tracts (roughly 20% of each state) nominated by the governor of each state that qualify for investment in business or property through Opportunity Funds.

Where are the Opportunity Zones?

Browse our map below to see designated Opportunity Zones across the country.

What are Qualified Opportunity Funds?

Qualified Opportunity Funds are unique investment vehicles that enable investors to take advantage of new tax incentives incorporated invest in businesses and property located in Opportunity Zones.

 

What are the Opportunity Zone Program tax benefits?

By investing in a qualified opportunity fund investors have the ability to temporarily defer their original capital gain until 2026, or when their opportunity fund investment sells.

Investors can also reduce their capital gains expense through a 10% step-up basis if their investment is held for 5 years, and an additional 5% step up basis if held for 7 years.

If an Opportunity Fund investment is held for at least 10 years investors can permanently exclude 100% of the gain generated from their investment in the fund from taxes.