Opportunity zones are the most economically distressed areas in the US. These areas need investments to see some growth here on all levels. These economically distressed areas are also in need of a certain revitalization- the creation of job opportunities mainly- and therefore such investment opportunities have been created. The opportunity zones program was created under the Tax Cuts & Job Act of 2017, with the main aim to push somehow economic growth to see these areas flourish.
- Opportunity zones are in heavy need of revitalization, growth & investments
- To somehow incentivize these investments in distressed communities, the Federal Government came up with the creation of an opportunity zones program. Those who make investments in a qualified opportunity zones program will enjoy a wide range of tax benefits.
- There is a 5-year holding period on qualified opportunity zones.
- Currently, there are almost 9,000 such opportunity zones available in the US. Most areas that gained the designation of an opportunity fund have lacked important investments for years or even decades. These zones can be easily seen if you will check the website of the U.S. Department of Housing and Urban Development. They have here an interactive map that is easily accessible, so you can immediately see if there is an opportunity zones program available in your area.
- Currently, approximately 25% of the opportunity zones can be found in the US. Rural areas.
There are certain tax advantages existent when you invest in opportunity zones. The investor will be able to defer tax payments on the capital gains that they realized from earlier investments. If you would like to find out more about the opportunity zones program, or maybe learn exactly how it could benefit you if you invested here you should talk to an experienced attorney focused on such legal and social matters. As an investor, you can also enjoy further tax gains if you will hold to your investment for minimum of 5 years (and up to 10). Opportunity funds that are held for 5 years will enjoy a 10% exclusion from the deferred gains.
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