New Incentivized Investment: Opportunity Zones
Author: Mark Fichtenbaum.
Source: Volume 36, Number 01, Fall 2018 , pp.47-50(4)

< previous article |next article > |return to table of contents
Abstract:
In the recently passed Tax Act, Congress has added a new opportunity to encourage investors to start new businesses in economically depressed areas. The incentives are threefold: (1) gains from the sale of any property are deferred to the extent they are invested in an “opportunity zone” fund; (2) the amount of the deferred gain is reduced if the investor maintains the investment for at least five years; and (3) all profits from the new investment escape tax altogether as long as it is held for at least 10 years.Keywords: Tax Cuts and Jobs Act, opportunity zones, deferred recognition of gains, gains exempt from tax, Opportunity Zone funds, holding period requirements
Affiliations:
1: MF Consulting.