Opportunity Zones Investment Tax Benefits
Opportunity Zones provide 3 primary tax benefits to investors who invest in a designated Opportunity Zone through the use of an Opportunity Fund.
- Tax on income for capital gains is temporarily deferred for capital gains reinvested in a Qualified Opportunity Fund.
- Capital Gains reinvested in a Qualified Opportunity Fund receive a stepped-up basis, which will effectively exclude up to 15% of the original gain from being taxed.
- Capital Gains from the sale or exchange of an investment in a Qualified Opportunity Fund are not taxed, so long as the investment is held for at least 10 years.