Opportunity Zones
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Opportunity Zone Basics
Qualified Opportunity Zones were created by the 2017 Tax Cuts and Jobs Act, designed to spur economic development and job creation in distressed and low-income communities by providing a capital gains reinvestment mechanism that defers and reduces and excludes tax liability on gains from qualified investments.
An Opportunity Zone is a community that has been nominated by the stated and certified by the Treasury Department as qualifying for this program.
Requirements:
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Investment in an Asset (real estate, business, infrastructure, etc.)
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The asset is located in an Opportunity Zone
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Capital originates from a recent capital gains
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Investment to occur before 2036
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Benefits:
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Tax liability payment deferral until 2026
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10% step-up in basis if held a minimum of 5 years & invested by 2021
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100% federal capital gains tax exclusion on sale, if held for a minimum of 10 years.
Qualified Opportunity Zone Fund
Any investment vehicle which is organized as a corporation or partnership for the purpose of investing in qualified opportunity zone property that holds at least 90% of its assets in a qualified opportunity zone.
Qualified Opportunity Zone Property
The three key funding structures that qualify for Opportunity Zones are as follows:
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Qualified Opportunity Stock
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Qualified Opportunity Zone Partnership
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Qualified Opportunity Zone Business Property
![Qualified Opportunity Zone Fund.jpeg](https://static.wixstatic.com/media/7abb7a_0077d6e3d1f84021b42c20d19f2a8414~mv2.jpeg/v1/fill/w_600,h_324,al_c,q_80,usm_0.66_1.00_0.01,enc_auto/Qualified%20Opportunity%20Zone%20Fund.jpeg)
![Qualified Opportunity Zone Property.jpeg](https://static.wixstatic.com/media/7abb7a_7e6d7417e9cb43e2b4beb41c75d26d8b~mv2.jpeg/v1/fill/w_600,h_713,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/Qualified%20Opportunity%20Zone%20Property.jpeg)