Author: Chris L. Raddatz
Issue: April 12, 2018
Opportunity Zones and Opportunity Funds—A Win-Win for Investors and Low-Income Community Businesses
An often-overlooked program enacted as part of the Tax Cuts and Jobs Act creates Opportunity Zones to incentivize economic development and job creation in low-income communities. The new program, outlined in new Internal Revenue Code sections 1400Z-1 and -2, allows unlimited amounts of otherwise taxable capital gains to be deferred and subsequent earnings on capital gains invested in Opportunity Funds to be forgiven altogether. To defer the gain, a taxpayer must invest the proceeds from the sale into an Opportunity Fund within 180 days in an amount equal to the gain being deferred…
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