INVEST YOUR CAPITAL IN OPPORTUNITY ZONE 2.0 PROJECTS
DEFER AND REDUCE CAPITAL GAINS TAX
Take advantage of new tax incentives to investors who invest their unrealized capital gains in Qualified Opportunity Funds. These investments include real estate and business projects located in federally recognized Opportunity Zones.
The OZ incentive structure is designed to reward long-term investments that generate lasting value within target communities.
BENEFITS
Opportunity Zones encourage investment by providing a series of capital gains tax incentives for qualifying activities in designated areas:
• Deferral: Investors may defer taxes on capital gains that are reinvested in a QOF for up to five years.
• Basis step-up: After the five-year deferral, QOF investors receive a 10 percent reduction (step-up in basis) on their deferred capital gains tax liability (or 30 percent for investments in rural-specific QOFs).
• Tax-free growth: Gains earned on investments in QOFs held for at least 10 years are permanently exempt from federal capital gains tax.