Engage Newswire
Opportunity zones CT

What Are Opportunity Zones?

Opportunity zones CT are new investment opportunities that are starting to get the attention of business owners. This is a new subject, however, so many people arenโ€™t completely sure how they work. Opportunity zones CT were created by the Tax Cuts and Jobs Act of 2017. This act essentially reduced statutory tax rates of taxable income and shifted the threshold for several income tax brackets. This act also introduced these zones as a new community investment tool.

 

The goal of opportunity zones is to encourage long-term investment in low income communities. To be a qualified opportunity zone, a community has to have a poverty rate of at least 20%; it also qualifies if the median family incomes are no greater than 80% of those in their surrounding areas. Qualified opportunity zones can be found all over the United States, giving investors plenty of options for where they want to operate their businesses.

 

The reason that business owners are interested in investing in these areas are the opportunity zone tax benefits. One of the best benefits is the temporary tax deferral of capital gains. This means that instead of being taxed on the capital gain from the sale of an asset, investors can place their existing assets with capital gains into the zone. By doing so, these capital gains wonโ€™t get taxed until the end of 2026 or until the asset is disposed of. Another opportunity zone tax benefit is that investors wonโ€™t have to pay any capital gain taxes on investments for at least 10 years.

 

There are many opportunity zone tax benefits, which is why investors are rushing to start businesses in these areas. As any investment, however, there are rules and regulations. For example, if the funds generate rental income, the income could be taxed. Although there are many opportunity zone tax benefits, itโ€™s important to know every detail of this transaction before committing, which can be done with the help of an opportunity zone attorney. The opportunity zone attorney will ensure that the investor knows everything that they need to know so that they can get the best tax benefits.

Engage Newswire

Engage Newswire

Follow us

Don't be shy, get in touch. We love meeting interesting people and making new friends.

Most popular

Most discussed