The Opportunity Zone Incentives Program was created to encourage investments in economically-distressed communities. To accomplish this, each state, the District of Columbia and five U.S. territories have designated “opportunity zones” within their respective boundaries. Once an opportunity zone has been located, any eligible taxpayer (individuals, partnerships, C-corporations, S-corporations, trusts, estates, REITS or RICs) can invest certain realized capital gains in that opportunity zone through a Qualified Opportunity Fund (QOF). The opportunity zone incentives can provide investors the opportunity to defer or even eliminate capital gains taxes by investing in a QOF.
The Location of Opportunity Zones
According to the IRS, there are more than 8,700 census tracts that have been designated as a Qualified Opportunity Zone.
Tax Benefits of Investing in a Qualified Opportunity Zone
There are several tax benefits to be gained from making a qualified investment in an opportunity zone through a QOF, including:
How Eide Bailly Can Help
Understanding how to take advantage of the Opportunity Zone Incentives program can be overwhelming and confusing. Eide Bailly can help.
The Eide Bailly Opportunity Zone Team consists of professionals with expertise in community development, construction, real estate, finance and tax. They can:
There are designated Opportunity Zones in all 50 states, the District of Columbia and five U.S. territories. IRS Notice 2018-48 provides a list of the more than 8,700 census tracts that have been designated as qualified Opportunity Zones. Check out the map to see where one is located near you.
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Understanding the ins and outs of the Opportunity Zone Incentives program can be challenging.
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