Opportunity Zones offer fertile ground for new investment
The Tax Cuts and Jobs Act of 2017 (TCJA) provides taxpayers a new tax incentive designed to direct long-term capital investments into economically distressed communities, or “Opportunity Zones”. These Opportunity Zones are eligible for the temporary deferral and potential exclusion of capital gains.
By re-investing capital gains in a Qualified Opportunity Zone Fund (QOF) the taxpayer is able to defer payment of current capital gains taxes and can also defer a portion of the appreciation realized from the investment. When the investment is held for at least 10 years, all of the gains from the investment are excluded from gross income.
With the issuance of guidance from Treasury on October 19, 2018, in the form of Proposed Treasury Regulations and Revenue Ruling 2018-29, Inner Circle has begun to put development plans into action with several projects primed and ready.
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