Learn About the Opportunity Zone Program

Learn About the Opportunity Zone Program

What is the Opportunity Zone Program?

On December 22nd, 2017 an exciting new tax incentive program was enacted to unlock 6 trillion dollars in unrealized capital gains and promote investments 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 can sell your appreciated asset and temporarily defer your original capital gain until 2026. You’ll also be able to reduce your capital gains expense and have the ability to permanently exclude capital gains from the appreciation yielded from your investment into the qualified opportunity fund.

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 Investor Incentives?

Specific tax incentives are offered to tax payers that invest their capital gains into Qualified Opportunity Funds based on the length of time their investment is held. These tax incentives include:

Defer your capital gains until 2026

By investing in a qualified opportunity fund you can defer your original capital gains until December 31st, 2026, or when your Opportunity Fund investment is sold.

5-7 year hold: Discount on your original capital gains

Exclude 10% of your original capital gain from taxation if you hold your investment for at least 5 years. Exclude 15% of your gain if you hold for at least 7 years.

10 year hold: 100% Tax Free Gains on Fund Investment

If you hold your Opportunity Fund investment for at least 10 years, all of your gain from that reinvestment is 100% tax free (permanent exclusion of capital gains).