- July 30th, 2019, 10:09 pm
#580856
Federal Opportunity Zones were created as part of the tax reform bill passed by Congress in 2017. Each state was able to submit locations that were in need of economic stimulation. Generally, these are low income areas. The goal is to get investors that are holding assets (investments, properties, businesses, etc...) to sell them them and not pay the capital gains tax if they reinvest the gains into funds that are being created to invest in these opportunity zones. Capital gains would not have to be paid until 2026 if the investment remains. Additional tax benefits apply if the investment is held for 10 or more years.
Clear as mud?