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 Qualified Opportunity Funds. View a map of Opportunity Zones across the USA.
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.
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:
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.
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.
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).