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Tax Cuts and Jobs Act of 2017 created a new community development program that encourages private investment in qualified opportunity zones. This program allows taxpayers to defer unlimited amount of gain and reduce gain from the sale or exchange of property if the taxpayer reinvests the gain proceeds in a qualified opportunity fund.

Opportunity zones are certain designated tracts that provide significant tax benefits to investors who invest in these areas to potentially eliminate a portion of the gain and all future appreciation.

Investments that are located in Qualified Opportunity Zones means that our investors may qualify for the following tax benefits:

  • Deferral allowed through December 31, 2026

  • 5 year holding period = 10% gain elimination

  • 7 year holding period = 5% more gain elimination (15% total)

  • 10 year holding period = Appreciation (in excess of gain) eliminated