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 Tax Benefits

The three major tax benefits of Opportunity Zones:

  1. Defer: Capital gain deferral if the funds were reinvested in a Qualified Opportunity Fund - the original gain can be deferred until the earlier of the Qualified Opportunity Fund being sold or 12/31/2026.
  2. Reduce: Capital gains can be partially recognized if they are held for a period of more than 5, but less than 10 years.
    1. Opportunity Fund is held less than 5 years – the full amount of gain is recognized.
    2. Opportunity Fund is held 5-7 years – 90% of the capital gain is recognized.
    3. Opportunity Fund is held for 7-10 years – 85% of the capital gain is recognized.
  3. Eliminate: Elimination of capital gains if an opportunity fund is held for at least 10 years

 Who Should Consider

  • Those with significant gains that will be recognized upon the sale of non-Opportunity Zone Property. The funds can be reinvested in an Opportunity Fund within 180 days and the gains can temporarily be deferred.
  • Those considering the purchase of a new or existing business real estate or stock.