Leveraging Opportunity Zones for Tax-Advantaged Investments

[Bette Hochberger]

Investing in Opportunity Zones can offer significant tax advantages, including deferred and reduced capital gains tax and tax-free appreciation on long-term investments.

Key Points:

1. Tax Deferral: Capital gains reinvested in Opportunity Zone Funds can be deferred until the earlier of the investment's sale or December 31, 2026.
   
2. Step-up in Basis: Holding the investment for at least 5 or 7 years allows for a 10% or 15% step-up in basis respectively, reducing the taxable gain.
   
3. Tax-Free Growth: If the investment in the Opportunity Zone Fund is held for at least 10 years, any appreciation is tax-free when sold.