How do I invest in an Opportunity Zone?
Investments in Opportunity Zones are made through Qualified Opportunity Funds. You must make your investment through a Qualified Opportunity Fund in order qualify for any benefit.
Qualified Opportunity Zones were created by the 2017 Tax Cuts and Jobs Act. These zones are designed to spur economic development and job creation in communities throughout the country and U.S. possessions by providing tax benefits to investors who invest eligible capital into these communities.
1. Defer taxes on previously earned capital gains.
2. Potentially avoid paying federal taxes on your capital gains after 10 years.
An investor has an eligible capital gain.
An investor has 180 days to invest following the date of the capital gains event to select a Qualified Opportunity Zone Fund ("QOFZ").
Investments raised are used to develop properties in a designated OZ
OZ Fund Manager completes and leases developed buildings.
OZ Fund Manager sells all the properties after 10 years and generates returns for investors
An investor that holds their investment in a Qualified Opportunity Fund for at least ten years will not be required to pay federal capital gains taxes on any realized gains from the investment.
Opportunity Zones can be used to support small businesses by providing access to Opportunity Zone capital or by using Opportunity Zone capital to leverage small business loans or venture capital. Opportunity Zones can also be used to develop innovation and small business hubs that support local businesses and entrepreneurs.
Yes. If the Qualified Opportunity Fund holds at least 90% of its assets in Opportunity Zone property, the fund can invest in as many qualified Opportunity Zones as it desires.
