Today I wanted to discuss a new community development program called opportunity zones. These include Redhook, Gowanus and near the Brooklyn Navy Yard.
Opportunity zone was created by the tax cuts and jobs acts of 2017. The purpose of the opportunity zone is to increase investment in low income areas of the country. The state may designate up to 25% of low income census tracts as opportunity zones. An investor who realizes certain capital gain income may reinvest capital gain in an opportunity fund within 180 days. In order to qualify, the opportunity fund needs to invest more than 90% of it’s assets in qualified opportunity zone property that is located in an opportunity zone.
Capital gain taxes are deferred for investments reinvested into investments in the zones, if the investment is held for ten years, all capital gains on the new investment are waived. If an investor invest in an opportunity fund by the end of 2019 and keeps the property for seven years 15% of the capital gain will be deferred and for five years 10% deferred. Hear is a link that provides info on opportunity zones along with a map of the opportunity zones areas in your neighborhood.
Opportunity Zone Explain Opportunity Zone Map
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Dena