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    • Home
    • Available
      • Featured
      • TBD Catalina
      • 118 A Central Avenue
      • 348 Central Avenue
      • 5601, 5603 Central Avenue
      • 238 Cornerstone Blvd
      • 111 B Crawford St
      • 200 Leach Street
      • 321 Ouachita Ave
      • 321 Ouachita Ave, 1st fl
      • 315 Park Avenue
      • TBD Park Avenue
      • 101 2nd Street
      • 203 Stearns Point #B6
      • 203 Stearns Point #D1
      • 203 Stearns Point #F5
      • 101 West Mill St, Malvern
    • Sold/Leased
      • 2025
      • 2024
      • Sold 2023
      • Sold 2022
      • Sold 2021
      • Sold 2020
      • Sold 2019
      • Sold 2018
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    • Contact Us
      • Contact
      • Social Media
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      • Awards
      • Happenings
      • Links
      • Media/Press
      • Opportunity Zones
      • Testimonials
      • ULD Blog
    • Our team
      • Amber Henson
      • Karen Nutt

  • Home
  • Available
    • Featured
    • TBD Catalina
    • 118 A Central Avenue
    • 348 Central Avenue
    • 5601, 5603 Central Avenue
    • 238 Cornerstone Blvd
    • 111 B Crawford St
    • 200 Leach Street
    • 321 Ouachita Ave
    • 321 Ouachita Ave, 1st fl
    • 315 Park Avenue
    • TBD Park Avenue
    • 101 2nd Street
    • 203 Stearns Point #B6
    • 203 Stearns Point #D1
    • 203 Stearns Point #F5
    • 101 West Mill St, Malvern
  • Sold/Leased
    • 2025
    • 2024
    • Sold 2023
    • Sold 2022
    • Sold 2021
    • Sold 2020
    • Sold 2019
    • Sold 2018
    • Leased
  • Contact Us
    • Contact
    • Social Media
  • More
    • Awards
    • Happenings
    • Links
    • Media/Press
    • Opportunity Zones
    • Testimonials
    • ULD Blog
  • Our team
    • Amber Henson
    • Karen Nutt

OPPORTUNITY ZONEs

Temporary Deferral

Permanent Exclusion

Temporary Deferral

A temporary deferral of inclusion in taxable income for capital gains reinvested into an Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which

the opportunity zone investment is disposed of or December 31, 2026.

Step-Up In Basis

Permanent Exclusion

Temporary Deferral

A step-up in basis for capital gains reinvested in an Opportunity Fund. The basis is increased by 10% if the investment in the Opportunity Fund is held by the taxpayer for at least 5 years and by an additional 5% if held for at least 7 years, thereby excluding up to 15% of the original gain from taxation.

Permanent Exclusion

Permanent Exclusion

Permanent Exclusion

A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in an Opportunity Fund if the investment is held for at least 10 years. This exclusion only applies to gains accrued after an investment in an Opportunity Fund.

Frequently asked questions

Q. What is a Qualified Opportunity Zone (QOZ)?

A.  A QOZ is an economically distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as QOZs if they were nominated for that designation by a state, the District of Columbia, or a U.S. territory and that nomination was certified by the Secretary of the U.S. Treasury via his delegation of authority to the Internal Revenue Service (IRS).

Q. How were QOZs created?

A. Opportunity Zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017.

Q. Have Opportunity Zones been around a long time?

A. No.  The first set of QOZ designations, covering parts of 18 states, was designated on April 9, 2018.  QOZs have been designated to cover parts of all 50 states, the District of Columbia, and 5 U.S. territories.

Q. What is the purpose of Opportunity Zones?

A. QOZs are an economic development tool—that is, they are designed to spur economic development and job creation in distressed communities.

Q. How do Opportunity Zones spur economic development?

A. QOZs are designed to spur economic development by providing tax incentives for investors who invest new capital in businesses operating in one or more QOZs.

  • First, an investor can defer tax on any prior eligible gain to the extent that a corresponding amount is timely invested in a Qualified Opportunity Fund (QOF).  The deferral lasts until the earlier of the date on which the investment in the QOF is sold or exchanged, or December 31, 2026.  If the QOF investment is held for at least 5 years, there is a 10% exclusion of the deferred gain.  If held for at least 7 years, the 10% exclusion becomes 15%. 
  • Second, if the investor holds the investment in the QOF for at least 10 years, the investor is eligible for an adjustment in the basis of the QOF investment to its fair market value on the date that the QOF investment is sold or exchanged.  As a result of this basis adjustment, the appreciation in the QOF investment is never taxed.  A similar rule applies to exclude the QOF investor’s share of gain and loss from sales of QOF assets. 

Q. Do I need to live in a QOZ to take advantage of these tax incentives?

A. No.  You can take advantage of these tax incentives even if you don’t live, work, or have an existing business in a QOZ.  All you need to do is invest the amount of a recognized eligible gain in a QOF and elect to defer the tax on that gain.

Q. I am interested in knowing where the QOZs are located. Is there a list of QOZs available?

A. Yes.  The list of each QOZ can be found in IRS Notices 2018-48PDF and 2019-42PDF.  Further, a visual map of the census tracts designated as QOZs may be found at Opportunity Zones Resources.

For more information visit:

https://www.irs.gov/credits-deductions/opportunity-zones-frequently-asked-questions

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