An opportunity zone is a specific, low-income census tract nominated by a state or territory that has been certified by the Secretary of the Treasury. Investors can defer tax on any capital gain made from selling or exchanging an asset if they reinvest the proceeds into a qualified opportunity fund within 180 days. The fund then must hold at least 90% of its assets in qualified Opportunity Zone property.
There are two main benefits of investing in opportunity zones: 1) Deferral of tax on any capital gain made from selling or exchanging an asset if they reinvest the proceeds into a qualified opportunity fund within 180 days, and 2) eliminated tax on any appreciation in the value of their investment in the zone if it’s held for 10 years or more.
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