Opportunity Zone Funds

Investing In Qualified Opportunity Zones

Get Substantial Tax Benefits On Your Investments

  • Defer Up To 100% Capital Gains Tax

Qualified Opportunity Zones Investments

When selling a real estate asset that has appreciated in value, a 1031 exchange may be your best bet. To defer the capital gains taxes, there is another option if a property owner issues a 1031 exchange date. Your sales profits may be reinvested in a Qualified Opportunity Fund, a tax-advantaged instrument that entices investors to put money into economically struggling regions. QOFs are a tax-saving tool for anybody selling assets and earning capital gains, not only those participating in 1031 exchanges. If an investor rolls over the earnings from the sale of a property they have given up into a QOF, they can defer paying capital gains taxes.

Why Investing In A Qualified Opportunity Zone Is A Good Idea?

Tax Reductions: You can defer capital gains until December 2026 if you reinvest your sales profits in a QOF. After this period, you will only be required to pay 85% of the tax on the first sales earnings; the other 15% will be excused.

Capital Gain Tax Deferral: The money you invested will go towards a real estate development project in that specific Qualified Opportunity Zone once you have reinvested in a QOF and deferred the capital gains taxes on your sales proceeds. Any realized capital gains on the sale of your investment will not be subject to taxes if you retain it for at least ten years.

How Do These Investments Work?

The Tax Cuts and Jobs Act, passed in 2017, gives states the authority to designate certain economically challenged areas as Qualified Opportunity Zones. By investing in a QOZ, a taxpayer can defer paying taxes on unrealized capital gains. The money will subsequently be used to purchase real estate in that QOZ. Within 180 days of selling the relinquished property, the investor must roll the sale’s gain into a QAF in order to meet the requirements. After then, the QOF may utilize this investment to buy real estate holdings in the QOZ.

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