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?