Opportunity Zone legislation within the Tax Cuts and Jobs Act of 2017 is a powerful tax strategy that uses tax incentives to attract long-term private investments and promote economic growth in designated urban and rural areas.
Through an investment vehicle called a Qualified Opportunity Fund, an investor potentially has the ability to:
Generally, investors who experience a capital gain from a sale or exchange of a capital asset and elect to invest such capital gain into a Qualified Opportunity Fund within 180 days after the sale or exchange may be eligible for certain benefits:
Transforming and uplifting neighborhoods by injecting private capital into designated communities to help spur economic development and improve quality of life.
Anyone who recognizes a capital gain for Federal income tax purposes may qualify for the tax benefits. The capital gain can be from nearly any asset (business, real estate, stocks, bonds, etc.). This includes individuals, C corporations (including regular investment companies), Real Estate Investment Trusts (REITS), partnerships, S Corporations, trusts and estates. To defer the gain realized from the sale of an appreciated asset, the investor must reinvest the gain into a Qualified Opportunity Fund within 180 days of realizing the gain. Investors can invest the original basis from the appreciated asset sale as well into the Qualified Opportunity Fund, but only the portion of the investment attributable to the gain from the appreciated asset will be eligible for the exemption from tax on future potential appreciation in the Qualified Opportunity Fund.
If you would like to learn more about Platform Ventures' Qualified Opportunity Fund program please fill out the form below.