The Qualified Opportunity Zone program was created under the Tax Cuts and Jobs Act of 2017 to stimulate investment in designated communities in need of economic growth, called Qualified Opportunity Zones.
A temporary deferral of inclusion in taxable income for capital gains reinvested into an Opportunity Fund with 90% of its assets in one or more Opportunity Zones until December 31st, 2026 or exit from the Fund, whichever comes first.
Reduction in the taxable value of reinvested capital gains by 10% if the investment is held in the Opportunity Fund for at least 5 years and by an additional 5% if held for at least 7 years. This excludes 15% of the original gain from taxation.
New gains from Opportunity Fund investments held for at least 10 years are permanently excluded from the capital gains tax. These Fund investments can be held through as late as 2047 without losing tax benefits.
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