The 2017 tax act, enacted in December 2017, included various incentives for taxpayers to make investments that might spur economic development and job growth. One of the key incentives involves qualified opportunity funds that make investments in qualified opportunity zones. If a taxpayer chooses to sell assets generating a capital gain and invests the amount of the gain in an opportunity fund that complies with relevant tax rules, the taxpayer can defer and often reduce taxes on that gain, and the subsequent sale of the opportunity fund investment generally will not be taxable, provided that the investment is held for at least 10 years. Opportunity zones were finalized by the Treasury Department and the Internal Revenue Service in 2018, and along with a few designated adjacent tracts, they represent 25% of the low-income census tracts (with a minimum of 100) in each jurisdiction.
Read the full article by clicking the PDF link below.
The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact your regular Nixon Peabody LLP representative. This material may be considered advertising under certain rules of professional conduct.
Opportunity Zones Alert | 06.19.19
Opportunity Zones Alert | 05.21.19
Opportunity Zones Alert | 04.25.19
Securities Law Alert | 03.03.19