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Those who invest in Opportunity Zones will be eligible for a 10% step-up in basis after holding the investment for over 5 years.
Defer taxes on capital gains from several asset classes such as multifamily, self-storage, hospitality, diversified portfolios, and more.
This option delivers invaluable resources to economically struggling communities that need it most, contributing to the area's growth.
A qualified opportunity zone (QOZ) is a program established under the Tax Cuts and Jobs Act of 2017 with the idea of providing a tax incentive for real estate investors to invest their money in low-income areas. About 8,700 zones have been designated for investors.
In May, the Georgia Department of Community Affairs (DCA) released a survey to facilitate matching Federally Qualified Opportunity Zone (OZ) development proposals to funders. Part of the 2017 Tax Cuts and Jobs Act, this OZ initiative encourages the flow of capital into communities suffering from disinvestment.
To be eligible for the benefits associated with the OZ tax incentives, investors must deploy capital into underserved areas in one of three ways: by purchasing stock or taking partnership in a business located in an OZ, or by purchasing property used to do business within an OZ.
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The property is also located in a federally designated Opportunity Zone. Opportunity Zones allow for the partial exclusion of certain gains from the sale or exchange of an asset if those gains are reinvested in a
Qualified Opportunity Fund (QOF). Also, gains on a sale of a QOF interest held for at least 10 years may be permanently excluded. The property must be substantially improved within 30 months from the time of sale using additional capital equal to or greater than the value of the improvements at the time of sale.
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