Qualified Opportunity Zones

[Andrew Doup]

Anyone interested in qualified opportunity zones? Here's a description about them: Created by the Tax Cuts and Jobs Act, over 8,700 tracts of land across the county have been designated as "qualified opportunity zones,” providing new and compelling tax incentives for rethinking where and how to do business. Normally, a profit resulting from the sale of an asset is taxed at a maximum capital gains rate of 20%. Now, Congress gives taxpayers the option of reinvesting that profit into opportunity zones in exchange for deferral of the tax until year-end 2026. If invested for seven years, then the taxpayer-investor receives a 15% tax break on the amount deferred. If invested for 10 years, then the sale of that investment will be treated 100% tax-free. Opportunity zones were designed to incentivize the reinvestment of an estimated $6 trillion in private, unrealized capital gains into designated areas that have failed to recover from the Great Recession. Is anyone planning on taking advantage of opportunity zones?