QOZB
QOZB
OPPORTUNITY ZONE SUMMARY
Created by the Tax Cuts and Jobs Act of 2017, the Opportunity Zone program is designed to incentivize long-term capital investment to disadvantaged urban and rural communities nationwide.The program provides tax incentives to investors who direct their capital gains into a Qualified Opportunity Fund, which then deploys capital into a designated Qualified Opportunity Zone. Ultimately, this can provide the investor with both a tax deferral and potential for tax-free growth.
Benefits may vary depending on the duration of the investment. Investors receive the full extent of the benefits under the program at 10 plus years. Opportunity Zone Funds must invest at least 90% of their capital in Opportunity Zones. Capital gains must be invested in a Qualified Opportunity Zone Fund within 180 days of the date of sale or exchange that generated the gain to qualify. This is not tax advice. Consult with your advisor.
TAX DEFERRAL
The deferred gain is recognized on the earlier of the date on which the investment is sold or December 31, 2026.
STEP-UP IN BASIS
The basis of the invested gains is increased by 10% if the investment is held at least five years and by an additional 5% if held for at least seven years, thus excluding up to 15% of the original gain from the taxation at seven years.
TAX FREE OPPORTUNITY
Any appreciation on the invested gains while in the Qualied Opportunity Fund is excluded from taxable income if the investment is held for at least 10 plus years.