In the last tax overhaul bill that was passed in late 2017, an exciting tax advantage program was created under the Investing in Opportunity Act that was brilliantly crafted by the Economic Innovation Group. It is called the new Opportunity Zone program and consists of geographic Opportunity Zones and Opportunity Funds. JLCD has formed the JLCD Opportunity Fund to enable investors to take advantage of the tremendous tax incentives afforded by the program. And, JLCD has already identified attractive qualified Opportunity Zone investments! If you are selling a business, real estate or cashing in stock at this late point in the economic cycle, then you can benefit greatly by leveraging this program!
Call us to find out how!
A. An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation of authority to the Internal Revenue Service.
A. Opportunity Zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017.
A. No, they are new. The first set of Opportunity Zones, covering parts of 18 states, were designated on April 9, 2018. Opportunity Zones have now been designated covering parts of all 50 states, the District of Columbia and five U.S. territories.
A. Opportunity Zones are an economic development tool—that is, they are designed to spur economic development and job creation in distressed communities.
A. Opportunity Zones are designed to spur economic development by providing tax benefits to investors. First, investors can defer tax on any prior gains invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on which the investment in a QOF is sold or exchanged, or December 31, 2026. If the QOF investment is held for longer than 5 years, there is a 10% exclusion of the deferred gain. If held for more than 7 years, the 10% becomes 15%. Second, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor is eligible for an increase in basis of the QOF investment equal to its fair market value on the date that the QOF investment is sold or exchanged.
A. A Qualified Opportunity Fund is an investment vehicle that is set up as either a partnership or corporation for investing in eligible property that is located in a Qualified Opportunity Zone.