Understanding Opportunity Zones
Enacted as part of the tax reform package that was signed into law in December 2017, the Opportunity Zones program is a new tool that allows individuals and corporations to take capital gain incurred from the sale or exchange of property – appreciated stocks, buildings, family businesses, and more – and roll the gain into businesses or projects located within Opportunity Zones.
With that investment comes tax benefits:
01
Tax deferral on gains you roll into an Opportunity Fund (until 2026 at the latest).
02
Tax reduction (up to 15%) on gains rolled into your Opportunity Fund.
03
No tax on appreciation of your investment if you “cash out” of your Opportunity Fund after 10+ years.
EXAMPLE:
Jane has stock she bought for $300 that has now appreciated to $1,300.
She wants to maximize her potential benefits under the Opportunity Zones program. She invests her $1,000 in gain in an “Opportunity Fund” for at least 10 years.
On the original $1,000 in gain, Jane would defer the $238 she would otherwise owe in tax until 2026 and ultimately only pay $202.30 in tax in 2026 – a savings of $35.70.
If Jane makes a great investment in an Opportunity Zone, and her $1,000 gets tripled to $3,000 over 10 years, she does not owe any tax at all on that $2,000 in appreciation.
Interested in learning more about Opportunity Zones?

Frequently Asked Questions
DISCLAI