Opportunity Zone Investing

The Opportunity Zone initiative, established under the 2017 Tax Cuts and Jobs Act, is a strategic tax incentive designed to foster economic growth in underserved communities. By offering significant tax advantages, this program aims to stimulate long-term investment in areas identified as having lower income levels. Across the United States, 8,700 zones have been designated for these investments, selected by governors based on 2010 census data. Investors who redirect their capital gains from any asset sale into these zones, focusing on new construction or substantial renovations, can access a range of valuable tax benefits, thereby contributing to the revitalization of these communities while optimizing their own tax outcomes.

It is important to contact your CPA or tax attorney first, but in general...

• anyone with a capital gain within the past 180 days should qualify
• a gain from a 2023 K-1 is eligible through September 2024 for investment to receive OZ tax benefits
• if 2023 tax estimates have been paid, an investor can still get a refund and defer tax liability to April 2027

• Sale of a business or real estate
• Sale of commodities or crypto
• Sale of stocks, bonds & options

*Investors can commit the entirety of a capital gain without reducing it for losses.

*Investing in OZ may leave unused 2023 tax losses available for carryforward into the next tax year.

Over $100 Billion of equity has already gone into this structure, but it is still relatively new.

Yes! In fact, the initial legislation passed with overwhelmingly bi-partisan support and there has been recent bi-partisan legislation introduced in Congress to further expand and extend the program.