maximizing your value
The Federal Opportunity Zone program provides significant tax incentives to investors who invest in designated Opportunity Zones using specialized investment vehicles known as Qualified Opportunity Funds. The program applies to investors selling qualified assets with built-in-gains who wish to diversify their holdings while minimizing their tax bills.
Investors who exit existing investments and reinvest in Opportunity Funds enjoy a reduced tax bill on selling existing those qualified investments, with the tax due date delayed until 2026, as well as an exemption from tax on gains recognized from the Opportunity Funds before 2046.
The Opportunity Zone program was enacted as part of the Tax Cuts and Jobs Act of 2017 to encourage investment in economically distressed urban and rural communities to spur economic development and job creation.
A Common Goal, Exceptional Results
Attorneys in Carmody’s Opportunity Zones team provide guidance to corporations, partnerships, limited liability companies, investors, developers and individuals on the full range of rules, eligibility requirements, exemptions and compliance requirements. They also keep clients informed of additional developments, guidance and clarifications issued by the Treasury Department and the IRS and advise clients on how to optimize the Opportunity Zones initiative on matters including:
- Fund Formation and Structuring
- Tax Compliance and Related Tax Matters
- Real Estate Acquisitions
- Asset, Property Management and Operational Issues
- Financing Components (Senior, Mezzanine and Preferred Equity)
- Affordable Housing and Tax Credit Matters
- Business Start-Ups