Qualified Opportunity Zone Fund Incentives

1. Deferral of Capital Gains Taxes:

Capital gains (short-term or long-term) from the sale of any asset that is reinvested in Opportunity Funds within 180 days following the disposition of that asset, shall be excluded from the investor’s gross income until the earlier of: December 31, 2026, or the date the investor sells his investment.

2. Elimination of Capital Gains Taxes for Investments in Opportunity Funds:

Opportunity Fund investors are exempt from federal taxation on capital gains derived from the appreciation of their investment if the investment is held for at least 10 years.

What is a Qualified Opportunity Zone Fund (QOF)?

A qualified opportunity fund (QOF) is an investment vehicle that specializes in aggregating private investments and deploying that capital in an Opportunity Zone (Ozone).

To take advantage of the tax benefits of investing in Opportunity Zones, investors must reinvest their capital gains from a prior investment into a Qualified Opportunity Fund (QOF), within 180 days of the recognized sale of that prior investment.

What Are Opportunity Zones?

An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Opportunity Zones are designed to spur economic development and job creation in these communities by providing tax benefits to investors.

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Opportunity Zones are a new community development program established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. The Opportunity Zones program provides a tax incentive for investors to re-invest their realized capital gains into Opportunity Funds that are dedicated to investing into Opportunity Zones designated by the chief executives of every U.S. state and territory.

The U.S. Treasury, in collaboration with State and Local governments, has certified 8,762

communities in all 50 states, the District of Columbia, five U.S. territories and Puerto Rico as Opportunity Zones.  “Nearly 35 million Americans live in areas designated as Opportunity Zones. These communities present both the need for investment and significant investment opportunities.” – US Treasury

  • A federal list of designated opportunity zones are available by clicking here

  • Most States have their own websites and maps as well.

Sean
Whalen

Sean Whalen, CFP®, MSF is the Director of Private Wealth and Senior Consultant at Asset Strategy. He has 20+ years of experience in investment management, risk management, budgeting, financial planning, and capital gain strategies. He formerly worked at Morgan Stanley and Santander Investment Services. He holds a Master of Science in Finance degree from Brandeis University. Contact us to learn more about our team.

Sean Whalen CFP®, MSF

781-235-4426 Ext 135

sdw@assetstrategy.com

Bill
O’Neill

William “Bill” O’Neill, AIF®️ is a graduate of Merrimack College with a BS in Finance. He is an Accredited Investment Fiduciary from the Center for Fiduciary Studies. Bill’s role with Asset Strategy is Communications Manager, which draws from his 25 years of experience as a serial entrepreneur. He was previously a partner/founder in an executive search firm, owned a purpose-built construction company, and helped develop a corporate marketing and communications firm. Bill has also been an investment property investor for over 20 years.

Bill O’Neill AIF®

781-235-4426 Ext 137

wjo@assetstrategy.com

About Asset Strategy

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