Opportunity Zones

Opportunity Zone Fund Investing

  • Eligible Capital Gains for investment into the Opportunity Zone Fund include gains recognizable from taxable exchanges such as: the sale of stocks or bonds, the sale of a property, or the sale of an interest in a partnership.
  • Both long term and short term Capital Gains can be invested into an Opportunity Zone Fund.
  • Gains taxed as ordinary income and gains from certain derivative contracts are not eligible for qualifying investment.
  • Each Investor generally must invest Capital Gains into Opportunity Zone Fund within 180 days of realizing Capital Gains.
  • Investor generally must make an election to defer gain in the tax return for the year of the Capital Gains and the investment in the Opportunity Fund and are solely responsible for ensuring eligibility and qualification in each Investor's individual circumstances.
  • Many taxpayers can defer Capital Gains through Opportunity Fund investment including: individuals, C corporations (including REITs and RICs), partnerships and trusts.
  • Only investors with qualifying Capital Gains are eligible for Opportunity Fund tax benefits.
  • IRS and Treasury finalize Opportunity Zone guidance
  • Opportunity Zones Frequently Asked Questions

How does it work?

An investor who has realized a capital gain by selling an asset like stocks or real estate can receive special tax benefits if they reinvest that gain into an Opportunity Fund within 180 days. There are three primary advantages to rolling over a capital gain into a qualified Opportunity Zone Fund:

1. Defer

the payment of your capital gains until Dec 31, 2026.

2. Reduce

Effective Jan. 1 the benefit drops to 10% after 5 years.

3. Pay Zero

tax on gains earned from the Opportunity Zone Fund