Established by Congress in the 2017 Tax Cuts and Jobs Act, the Opportunity Zone program is a new economic development tool that encourages long-term private investment in distressed urban and rural communities nationwide.
How does it work?
An investor with capital gains rolls those earnings into a Qualified Opportunity Fund, that then makes an equity investment in a real estate project or operating business within a designated Opportunity Zone.
By re-investing their capital gains through a Qualified Opportunity Fund, OZ investors are eligible to defer and potentially reduce their capital gains tax, and in some cases, earn returns on qualified OZ investments tax free.
This investor incentive encourages new capital to flow into areas historically underserved by traditional capital markets.
Want to learn more?
Contact Jeff Frankel at 314-615-1613 or [email protected].