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Nov 15, 2018

Opportunity Zones: A Positive Impact for Communities and Investors

Opportunity Zones: A Positive Impact for Communities and Investors

Investors considering allocating to a QOF can benefit from various incentives, including community revitalization, downside protection, diversification, and tax advantages.

Opportunity Zones (OZs) offer investors a unique opportunity to defer capital gains taxes and potentially earn tax-free gains over a decade by investing in Qualified Opportunity Funds (QOFs) focused on revitalizing distressed communities.


These designated geographic areas incentivize investment in real estate or businesses within them, with QOFs required to allocate at least 90% of their assets to OZs, certified by the U.S. Treasury Department for tax benefits. This initiative aims to stimulate economic growth in neglected areas while offering investors significant tax advantages.


In addition to the tax benefits associated with Opportunity Zones, the Tax Reform Act provides supplementary advantages such as increased expensing and accelerated depreciation for qualified property. Moreover, QOFs not only offer tax incentives but also contribute to social impact and environmental sustainability in low-income areas, fostering community development with philanthropic support for impactful measurement and implementation.


Access the full report for insights on deferring capital gains taxes and earning tax-free gains over ten years through Qualified Opportunity Zones and Funds, including updates on Treasury's proposed regulations.



If you do not have a work email address, please email us at info@primealpha.com and we can email you the report directly.



Table of Contents

  • Introduction to Opportunity Zone

  • What Is an Opportunity Zone?

  • How It Works

  • Why Should an Investor Allocate to a QOF?

  • Reinvested Capital Gain Benefit?

  • Comparing an Opportunity Zone to a 1031 Exchange?

  • Other Tax Benefits?

  • Qualified Opportunity Fund Frequently Asked Questions?

  • Qualified Opportunity Fund Social Impact / ESG Benefits?

  • Treasury Proposed Regulation Update




Thanks to our Contributor

Highmore

Highmore is a global alternative asset management firm investing in both public and private markets, directly and indirectly, across asset classes and investment structures.

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