15% Tax Reduction on your Capital Gains
23 December, 2019
Opportunity Zones are an attractive topic in the media, but what does it really mean?
Qualified Opportunity Zones were created by the 2017 Tax Cuts and Jobs Act. These zones are designed to spur economic development and job creation in distressed communities throughout the country and U.S. possessions by providing tax benefits to investors who invest eligible capital into these communities. Taxpayers may defer tax on eligible capital gains by making an appropriate investment in a Qualified Opportunity Fund and meeting other requirements.
The advantage over the next week, BEFORE 2020, is getting in for the full seven years to attain the 15% tax reduction. This advantage goes away after 2026. Therefore, any investment in 2020 and beyond, will only be applicable for a 10% tax reduction in Opportunity Zone Funds.