IRS Announces Opportunity Zone Designations.
Want to pay less tax on your real estate investments? A new community redevelopment program for economically distressed communities called Qualified Opportunity Zones (QOZs) offers significant tax benefits. One of the incentives works like a 1031 exchange, allowing a taxpayer to defer tax on gain from the sale of appreciated property in a QOZ if the gain is reinvested within 180 days of the sale in a Qualified Opportunity Fund (QOF). Tax benefits also include eliminating the tax on appreciation of QOF investments if the taxpayer holds its interest in the QOF for at least 10 years. In other words, while tax will always come due on initial deferred gain, the taxpayer could avoid any tax on future appreciation. Located in Arizona and across the U.S., Opportunity Zones could prove a major benefit to investors with assets that will appreciate rapidly. Learn more at https://www.cdfifund.gov.