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Lanier-McCormack Wealth Management

3638 Walton Way Extension

Suite 300
Augusta, GA 30909

Qualified Opportunity Zones

Qualified Opportunity Zones

A Tax-Advantaged Investment Solution Potentially Delivering Both Social and Financial Benefits

The Opportunity Zone program was created to revitalize economically distressed communities using private investments rather than taxpayer dollars. In return, investors participating in the opportunity zones may receive potentially significant tax benefits subject to the satisfaction of certain conditions.

Potential Tax Benefits of Qualified Opportunity Funds

An individual who invests in a qualified opportunity zone (QOZ) is eligible for favorable tax treatment in the form of both deferral and forgiveness. The potential tax benefits are summarized below.

Defer Taxes until 2026

10+ Year hold on QOF (Qualified Opportunity Fund) allows for complete tax elimination

What are Qualified Opportunity Zones?

Defined under the 2017 Tax Cuts and Jobs Act, QOZs are census tracts (permanent statistical subdivisions of a county) composed of economically disadvantaged communities, including a small percentage of tracts contiguous to low- income census tracts. With more than 8,700 QOZs identified, this source of untapped capital to revitalize underserved communities has attracted significant attention.

Qualified Opportunity Funds Invest in Qualified Opportunity Zones

A QOF is an investment vehicle typically organized as a corporation or a partnership which must hold at least 90 percent of its assets in QOZ businesses and assets. From the date of sale of an appreciated asset that triggers taxable gains, an investor has 180 days to invest up to the amount of those gains in a QOF in order to reap the potential tax advantages of the Opportunity Zone Program.

Investors with taxable gains from the sale or exchange of virtually any type of property, including the following, may potentially defer gains by reinvesting the proceeds in a QOF within 180 days of the sale or exchange.
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