The Tax Cuts and Jobs Act gives taxpayers a new planning tool, Section 1400Z, for deferring and reducing capital gains that are reinvested in a Qualified Opportunity Fund (QOF). A QOF is an investment vehicle designed to invest in property or businesses located in designated low-income areas throughout the U.S., the District of Columbia and U.S. territories. These areas are defined as Qualified Opportunity Zones (QOZs). Potential tax benefits for investing into a QOF include the deferral and partial exclusion of capital gains and the permanent exclusion from taxable income of any appreciation in the QOF interest if it is held for at least 10 years.
Join Eide Bailly to learn more about the goals of the QOZ program, the potential tax incentives, requirements for qualification based on recently proposed regulations, and strategies for investing in and exiting a QOF.