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.
That potential for total elimination of tax on the growth of an Opportunity Zone investment has the startup investment community abuzz with excitement.
And with $6.1 trillion in unrealized capital gains currently sitting idle in portfolios and balance sheets across the country, the potential capital supply for this program is unparalleled.
Interested in learning more about Opportunity Zones?