A new feature of the tax code passed by Congress late last year allows investors to defer or avoid capital gains taxes when they invest in designated under-invested areas, called “opportunity zones” until 2026, as long as ninety percent of their investment stays in the designated low income communities.
An opportunity zone is a low income census tract with an individual poverty rate of at least 20 percent and median family income no greater than 80 percent of the area median.
There are over 8,000 designated eligible opportunity zones that have been nominated by governors throughout the United States. The new tax benefit doesn’t require that housing be built to be affordable to lower income residents.
One key issue to consider, is that the Treasury Department has not yet established rules for utilizing the program, leaving it open to interpretation.
For additional information on Opportunity Zones and how to establish an Opportunity Fund, please contact: Michael F. Rosenblatt, President of FON Search and The Quest Organization at 212-971-0033 or via email at email@example.com