Incentives of Investing in an Opportunity Zone
New and expanding projects and businesses that are located within qualified Opportunity Zones are eligible for several tax benefits if the business makes the real estate or business investment using qualified capital gains and through a Qualified Opportunity Fund. The benefits of investing in this manner qualify the business for:
- Reduction of the taxable basis of the invested capital gain by up to 15%
- Up to a seven-year deferral of taxes on the invested capital gain
- No taxes on gains made by the invested capital gain if held for at least 10 years
Opportunity Fund Qualified Investments
Investments that qualify for Opportunity Funds can include real estate and/or other business expenses, but there are some restrictions.