Are You Sitting on Unrealized Capital Gains?
Introduced by the Tax Cuts and Jobs Act of 2017 (TCJA), opportunity zones are low-income census tracts, or areas adjoining low-income census tracts. The purpose of an opportunity zone is to connect low-income communities with capital investments to promote economic growth. From rural areas to metropolitan cities, there are approximately 8,700 zones, covering 12% of all U.S. territory.
As an investor, you can take realized capital gains and reinvest them into qualified opportunity funds (QOFs) — gaining access to tax deferral, step-up benefits on five- or seven-year investments and the elimination of the capital gain tax on 10-year investment appreciation.
Whether you’re looking for a QOF to invest in or you’d like to create one, you can do a lot to get started. To help ensure your QOF runs smoothly and satisfies regulations, Wipfli assists QOFs in performing crucial services such as:
For investors, we’re committed to your education. There are many intricacies around opportunity zones, and there’s still more guidance coming. No matter if you need assistance confirming if an investment is in an opportunity zone and if it qualifies as a QOF, if you want to set up and properly structure your own QOF, or if you need to work through the complexities of business and personal tax returns, Wipfli is here to help.
Learn more about opportunity zones and new regulations released in April 2019:
- How You Can Benefit From Investing In Opportunity Zones
- Opportunity Zone Regulations: Summarizing the Key Updates
Contact us to get started.
Featured Thought Leader
James D. Lockhart, JD, LLM, CPA
Jim has nearly 20 years of experience dedicated to providing extraordinary, proactive advice to help construction and real estate organizations succeed and grow. He serves a full range of construction, real estate, and hospitality organizations, specializing in investment and development due diligence, financing, tax and business structuring, construction services, and exit strategies.
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