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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.