*Provided by Fortune.com
“Among the many benefits, the initiative allows investors to defer tax on capital gains by investing in Qualified Opportunity Funds (QOF), vehicles organized specifically for injecting money into designated Opportunity Zones. Additionally, the longer an investment is held in a QOF, the lower the capital gains tax liability. Through step-up of basis (the readjustment of the value of an appreciated asset), investors receive a 10% exclusion of the deferred gain after five years, which grows to 15% after seven years. Furthermore, if the investment is held for at least 10 years, any appreciation of the QOF investment is tax-free.
Those looking for socially conscious investing can rest assured that these Opportunity Zone investments will target development in areas of the country that need it most. Last year, the unemployment rate in Opportunity Zones was nearly 1.6 times higher than the average U.S. census tract. Similarly, the average poverty rate across Opportunity Zones exceeded 32%.
Politicians and leaders of both parties have enthusiastically embraced this new approach to development in distressed areas. All 50 governors designated Opportunity Zones in their respective states in early 2018 and have since encouraged new investment there. Today, governors, mayors, and other community leaders are including Opportunity Zones in their economic development strategies. The support from state and local leaders will help ensure that the special Opportunity Zone investment incentives will bring economic growth and dynamism to the areas that need it most.”
For full article: https://fortune.com/2019/09/23/opportunity-zones-investment-trump-taxes/?utm_content=&utm_medium=email&utm_name=&utm_source=govdelivery&utm_term=