- 888-619-0001
Opportunity Zones
For Qualified Investors, OZ’s may offer a unique investment solution with benefits such as capital gains deferral, tax free growth and possible tax credits to offset passive gains.
Opportunity Zones (OZ’s) were initially created in 2017 through the Tax Cuts and Jobs Act. The purpose was to encourage long-term investments in distressed Urban and Rural communities across the United States in order to spur economic growth and job creation.
These zones have been nominated by each State and certified by the U.S. Department of the Treasury. Today there are thousands of low-income communities in all 50 states, the District of Columbia and five U.S. territories that are officially designated as Qualified Opportunity Zones.
What does this mean to me, as an investor?
For accredited investors, Opportunity Zone investments may offer many potential tax advantages such as:
• Deferral on paying tax on original capital gains until 2026*
• Discount on the deferred original capital gain when it is reported on the 2026 tax return*
• Step-up in basis on the sale of a new OZ investment once held for 10 years or more (currently max is through 2047)*
• Possible tax credits that can be used to offset dividends of the fund or can be passed through to offset real estate income from other sources*
*There are many variables that may affect the tax advantages outlined above. Please consult your tax attorney or CPA for specific details. Opportunity Zone investments may or may not be a suitable investment for clients and should be discussed thoroughly with your Advisor prior to investing.
