Opportunity Zone Program & Tax benefits

On December 22nd, 2017 an exciting new program was enacted by Congress in federal legislation to promote investments in specific areas known as Opportunity Zones.

If you have invested in stocks, real estate or other assets that have appreciated in value, historically you cannot sell those assets without paying huge capital gains taxes.

Now, by investing in a qualified opportunity fund, like Orlando Opportunity Fund, you can sell your appreciated asset and temporarily defer your original capital gain until 2026. You’ll also be able to reduce your capital gains expense through a 10% step-up basis if you hold the investment for 5 years, and an additional 5% step up basis if held for 7 years.

If you hold your investment in a Qualified Opportunity Fund for at least 10 years you will permanently exclude 100% of the gain generated from your investment in the fund from taxes.

What are Opportunity Zones?

Opportunity Zones are specific census tracts (roughly 20% of each state) nominated by the governor of each state that qualify for investment in business or property through Opportunity Funds.

What are Qualified Opportunity Funds?

Qualified Opportunity Funds are unique investment vehicles that enable investors to take advantage of new tax incentives incorporated invest in businesses and property located in Opportunity Zones.

What are the Opportunity Zone Tax Benefits?

Various tax incentives are offered to investors based on the length of time their investment is held in a Qualified Opportunity Fund.

Defer your capital gains until 2026

By investing in a qualified opportunity fund you can defer your original capital gains until December 31st, 2026, or when your Opportunity Fund investment is sold.

5-7 year hold: Discount on your original capital gains

Exclude 10% of your original capital gain from taxation if you hold your investment for at least 5 years. Exclude 15% of your gain if you hold for at least 7 years.

10 year hold: 100% Tax Free Gains on Fund Investment

If you hold your Opportunity Fund investment for at least 10 years, all of your gain from that reinvestment is 100% tax free (permanent exclusion of capital gains).