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:
- Asset and income testing
- Software technology implementations
- Structuring plans
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.
Contact us to get started.
Featured Thought Leader
Steven A. Barnes
Steve Barnes is a manager on the cost segregation team with expertise in the engineering approach of cost segregation for both new construction projects and purchased properties. His understanding of construction finances and his ability to analyze construction documents are important assets in the process of cost segregation projects.