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<p>When it comes to investment strategies for appreciated stock or crypto portfolios, it's important to have a well-defined approach that aligns with your financial goals and risk tolerance. The OZ Investment Strategy offers a comprehensive framework for managing and optimizing your investment portfolio, whether you're focusing on traditional stocks or the exciting world of cryptocurrency.</p><h3>Understanding the OZ Investment Strategy</h3><p>The OZ Investment Strategy is based on the principles of diversification, risk management, and long-term growth. It emphasizes the importance of spreading your investments across different asset classes, industries, and geographic regions to minimize risk and maximize returns. This strategy also incorporates a disciplined approach to monitoring market trends and making informed decisions based on thorough research and analysis.</p><figure id="figure-21ijxzsjcwlqy0n4ui"><img id="21ijxzsjcwlqy0n4ui" src="https://images.unsplash.com/photo-1611967556157-d5c8830b5161?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxM3x8aW52ZXN0bWVudCUyMHBvcnRmb2xpb3xlbnwwfHx8fDE3MDQzMDA3ODZ8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="investment portfolio" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1611967556157-d5c8830b5161?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxM3x8aW52ZXN0bWVudCUyMHBvcnRmb2xpb3xlbnwwfHx8fDE3MDQzMDA3ODZ8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h2>Step-by-Step Guide to Investing in Opportunity Zones</h2><h3>Step 1: Capitalize on Unrealized Gains</h3><p>Identify and sell portions of your portfolio that have accumulated significant unrealized gains. Remember, only the gain portion is required for reinvestment into an OZ. For instance, if you have $100k in gains, that's your ticket into tax-efficient real estate investing.</p><h3>Step 2: Invest in a QOF</h3><p>After selling your assets, you have 180 days to reinvest those capital gains into a Qualified Opportunity Fund. These funds are specifically created to invest in eligible properties and businesses in Opportunity Zones.</p><h3>Step 3: Understand the Benefits</h3><p>By transferring your gains into a QOF, you can defer the tax due on that gain until 2026. Essentially, this allows your investment to grow tax-deferred, increasing the potential for higher returns.</p><h3>Step 4: Plan for Tax Efficiency</h3><p>In 2026, consider employing a strategy like tax loss harvesting to offset the taxes due from your initial capital gains deferral. This involves selling off assets at a loss to balance out the gains, creating a more efficient tax scenario.</p><h3>Step 5: Enjoy Long-Term Benefits</h3><p>Hold your investment in the QOF for at least 10 years to gain the most from this strategy. After a decade, you'll receive a "stepped-up basis" on your investment, meaning the appreciation on your QOF investment will be tax-free upon sale, and you'll avoid depreciation recapture. This can significantly boost your tax-adjusted internal rate of return, potentially by more than 5% on a 10-year hold.</p><h2>Conclusion</h2><p>Investing in Opportunity Zones isn't just a savvy tax strategy; it's an investment in communities needing economic revitalization. By understanding and utilizing these steps, you can become a tax-efficient real estate investor, potentially boost your returns, and make a lasting impact. Dive into Opportunity Zones and discover how your capital gains can pave the way for not only wealth growth but also meaningful community development.</p>

Unlock Tax-Efficient Real Estate Investing: A Step-by-Step Guide to Opportunity Zones

<p>When it comes to understanding the world of OZ terms, it can be overwhelming to navigate through the various terms and acronyms. However, having a solid grasp of these key OZ terms is essential for anyone looking to delve into this field.</p><div data-editor-content="{&quot;blocks&quot;:[{&quot;key&quot;:&quot;idkm&quot;,&quot;text&quot;:&quot;Qualified Opportunity Zone (QOZ)\nA Qualified Opportunity Zone is a federally recognized low-income community nominated by its state or territory. There are 8,700+ of these census tracts in the US which were designated by each states governor in 2018 based on 2010 census data. This designation, certified by the CDFI Fund, supports the IRS in identifying areas eligible for specific investment benefits under the Opportunity Zone program.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:32,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;ejbjs&quot;,&quot;text&quot;:&quot;Qualified Opportunity Fund (QOF)\nA Qualified Opportunity Fund is a specialized investment vehicle designed to invest in assets within Opportunity Zones. Investors can either create their own QOFs or invest through third-party funds. A critical requirement is that 90% of a QOF's assets must be invested in QOZ businesses or QOZ business property.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:32,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;cvc2q&quot;,&quot;text&quot;:&quot;90% Investment Standard\nThis standard is a fundamental compliance measure for QOFs. It mandates that at least 90% of the QOF’s asset value must be invested in QOZ property, such as QOZ business property, stock, or partnership interests.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:23,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;21mua&quot;,&quot;text&quot;:&quot;Qualified Opportunity Zone Property (QOZ Property)\nThis umbrella term covers three types of investments in Opportunity Zones: QOZ stock, QOZ partnership interests, and QOZ business property. These are subject to specific eligibility tests based on their use and acquisition.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:50,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;90tiq&quot;,&quot;text&quot;:&quot;Qualified Opportunity Zone Business (QOZ Business)\nA QOZ Business is a trade or business operating in a QOZ, with at least 70% of its tangible property being QOZ business property. Additionally, it should generate at least 50% of its gross income from business activities within the QOZ and adhere to certain restrictions on nonqualified financial property and \&quot;sin businesses.\&quot;&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:50,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;3rhh1&quot;,&quot;text&quot;:&quot;Qualified Opportunity Zone Business Property (QOZ Business Property)\nThis term refers to tangible property that a QOF invests in or is used by a QOZ business. The property must be acquired after December 31, 2017, and meet the criteria of original use or substantial improvement by the QOF.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:68,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;12snh&quot;,&quot;text&quot;:&quot;Substantial Improvement Test\nFor a property or business to qualify as a QOZ investment, if its original use did not start with the QOF, it must be substantially improved. This generally means doubling the investment in the asset over 30 months.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:28,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;61qp2&quot;,&quot;text&quot;:&quot;Substantially All Test\nThis test requires that at least 70% of the use of QOZ business property must be within a QOZ for a minimum of 90% of the time the QOF or QOZ business holds the asset.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:22,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;n8nq&quot;,&quot;text&quot;:&quot;50% Gross Income Test\nA QOZ business must derive at least 50% of its gross income from active business operations within a QOZ. This can be determined based on service hours, location of property, or other relevant factors.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:21,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;cjevl&quot;,&quot;text&quot;:&quot;Active Trade or Business\nQOZ regulations stipulate that businesses in a QOZ must be actively conducted. This criterion is crucial for maintaining the eligibility of businesses as part of QOF investments.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:24,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;9vjtq&quot;,&quot;text&quot;:&quot;Working Capital Safe Harbor\nWhile QOZ businesses are limited to holding a small percentage of nonqualified financial property, this safe harbor provision allows them to maintain reasonable amounts of working capital. This facilitates QOFs in channeling assets into QOZ businesses for development and operational purposes under specific conditions.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:27,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}}],&quot;entityMap&quot;:{}}"><div class="" data-block="true" data-editor="4blht" data-offset-key="3e2j7-0-0"><strong>Qualified Opportunity Zone (QOZ)</strong><span data-offset-key="3e2j7-0-1"> </span><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="3e2j7-0-0"><span data-offset-key="3e2j7-0-1">A Qualified Opportunity Zone is a federally recognized low-income community nominated by its state or territory. There are 8,700+ of these census tracts in the US which were designated by each states governor in 2018 based on 2010 census data. This designation, certified by the CDFI Fund, supports the IRS in identifying areas eligible for specific investment benefits under the Opportunity Zone program.</span></div></div><div class="" data-block="true" data-editor="4blht" data-offset-key="cbbfa-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="cbbfa-0-0"><span data-offset-key="cbbfa-0-0"><br data-mce-bogus="1"></span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="cbbfa-0-0"><strong>Qualified Opportunity Fund (QOF)</strong><span data-offset-key="cbbfa-0-1"> </span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="cbbfa-0-0"><span data-offset-key="cbbfa-0-1">A Qualified Opportunity Fund is a specialized investment vehicle designed to invest in assets within Opportunity Zones. Investors can either create their own QOFs or invest through third-party funds. A critical requirement is that 90% of a QOF's assets must be invested in QOZ businesses or QOZ business property.</span></div></div><div class="" data-block="true" data-editor="4blht" data-offset-key="fgu5o-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="fgu5o-0-0"><span data-offset-key="fgu5o-0-0"><br data-mce-bogus="1"></span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="fgu5o-0-0"><strong>90% Investment Standard</strong><span data-offset-key="fgu5o-0-1"> </span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="fgu5o-0-0"><span data-offset-key="fgu5o-0-1">This standard is a fundamental compliance measure for QOFs. It mandates that at least 90% of the QOF’s asset value must be invested in QOZ property, such as QOZ business property, stock, or partnership interests.</span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="fgu5o-0-0"><span data-offset-key="fgu5o-0-1"><br data-mce-bogus="1"></span></div></div><div class="" data-block="true" data-editor="4blht" data-offset-key="34hf0-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="34hf0-0-0"><strong>Qualified Opportunity Zone Property (QOZ Property)</strong><span data-offset-key="34hf0-0-1"> </span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="34hf0-0-0"><span data-offset-key="34hf0-0-1">This umbrella term covers three types of investments in Opportunity Zones: QOZ stock, QOZ partnership interests, and QOZ business property. These are subject to specific eligibility tests based on their use and acquisition.</span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="34hf0-0-0"><span data-offset-key="34hf0-0-1"><br data-mce-bogus="1"></span></div></div><div class="" data-block="true" data-editor="4blht" data-offset-key="3pn37-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="3pn37-0-0"><strong>Qualified Opportunity Zone Business (QOZ Business)</strong><span data-offset-key="3pn37-0-1"> </span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="3pn37-0-0"><span data-offset-key="3pn37-0-1">A QOZ Business is a trade or business operating in a QOZ, with at least 70% of its tangible property being QOZ business property. Additionally, it should generate at least 50% of its gross income from business activities within the QOZ and adhere to certain restrictions on nonqualified financial property and "sin businesses."</span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="3pn37-0-0"><span data-offset-key="3pn37-0-1"><br data-mce-bogus="1"></span></div></div><div class="" data-block="true" data-editor="4blht" data-offset-key="5rigm-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="5rigm-0-0"><strong>Qualified Opportunity Zone Business Property (QOZ Business Property)</strong><span data-offset-key="5rigm-0-1"> </span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="5rigm-0-0"><span data-offset-key="5rigm-0-1">This term refers to tangible property that a QOF invests in or is used by a QOZ business. The property must be acquired after December 31, 2017, and meet the criteria of original use or substantial improvement by the QOF.</span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="5rigm-0-0"><span data-offset-key="5rigm-0-1"><br data-mce-bogus="1"></span></div></div><div class="" data-block="true" data-editor="4blht" data-offset-key="7eqdq-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="7eqdq-0-0"><strong>Substantial Improvement Test</strong><span data-offset-key="7eqdq-0-1"> For a property or business to qualify as a QOZ investment, if its original use did not start with the QOF, it must be substantially improved. This generally means doubling the investment in the asset over 30 months.</span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="7eqdq-0-0"><span data-offset-key="7eqdq-0-1"><br data-mce-bogus="1"></span></div></div><div class="" data-block="true" data-editor="4blht" data-offset-key="5dd2i-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="5dd2i-0-0"><strong>Substantially All Test</strong><span data-offset-key="5dd2i-0-1"> </span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="5dd2i-0-0"><span data-offset-key="5dd2i-0-1">This test requires that at least 70% of the use of QOZ business property must be within a QOZ for a minimum of 90% of the time the QOF or QOZ business holds the asset.</span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="5dd2i-0-0"><span data-offset-key="5dd2i-0-1"><br data-mce-bogus="1"></span></div></div><div class="" data-block="true" data-editor="4blht" data-offset-key="8mpp9-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="8mpp9-0-0"><strong>50% Gross Income Test</strong><span data-offset-key="8mpp9-0-1"> </span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="8mpp9-0-0"><span data-offset-key="8mpp9-0-1">A QOZ business must derive at least 50% of its gross income from active business operations within a QOZ. This can be determined based on service hours, location of property, or other relevant factors.</span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="8mpp9-0-0"><span data-offset-key="8mpp9-0-1"><br data-mce-bogus="1"></span></div></div><div class="" data-block="true" data-editor="4blht" data-offset-key="1houj-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="1houj-0-0"><strong>Active Trade or Business</strong><span data-offset-key="1houj-0-1"> </span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="1houj-0-0"><span data-offset-key="1houj-0-1">QOZ regulations stipulate that businesses in a QOZ must be actively conducted. This criterion is crucial for maintaining the eligibility of businesses as part of QOF investments.</span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="1houj-0-0"><span data-offset-key="1houj-0-1"><br data-mce-bogus="1"></span></div></div><div class="" data-block="true" data-editor="4blht" data-offset-key="86v6o-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="86v6o-0-0"><strong>Working Capital Safe Harbor</strong><span data-offset-key="86v6o-0-1"> </span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="86v6o-0-0"><span data-offset-key="86v6o-0-1">While QOZ businesses are limited to holding a small percentage of nonqualified financial property, this safe harbor provision allows them to maintain reasonable amounts of working capital. This facilitates QOFs in channeling assets into QOZ businesses for development and operational purposes under specific conditions.</span></div></div></div>

Understanding Key OZ Terms

<div data-editor-content="{&quot;blocks&quot;:[{&quot;key&quot;:&quot;5sv2q&quot;,&quot;text&quot;:&quot;Introduction:\nOpportunity Zones are the new frontier for investors looking to make a difference while also seeing excellent tax adjusted returns. But it's not a free-for-all. Understanding if you are even eligible to participate is the first hurdle to clear.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:13,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;dhg17&quot;,&quot;text&quot;:&quot;Busting the Myth: There's a common misconception that anyone can invest in OZs and automatically reap tax benefits. The reality is different. To tap into OZ advantages, you need capital gains—either short-term or long-term. &quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:18,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;eamge&quot;,&quot;text&quot;:&quot;Who's In The Game:\nYou must have a golden ticket—eligible capital gains—to get in. This includes a diverse group of taxpayers:&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:18,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;86ui9&quot;,&quot;text&quot;:&quot;Individuals and Family Offices: These players are blending their desire for solid returns with a passion for impactful investments. By injecting their gains into OZ projects, they're not just growing wealth; they're fostering community development.&quot;,&quot;type&quot;:&quot;unordered-list-item&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:31,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;8rj6h&quot;,&quot;text&quot;:&quot;Banks: For banks, OZ investments are a two-fold win. They satisfy Community Reinvestment Act requirements while enjoying the tax perks of OZ. It's a smart strategy for banks committed to supporting local communities.&quot;,&quot;type&quot;:&quot;unordered-list-item&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:6,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;5pina&quot;,&quot;text&quot;:&quot;Life Insurance Companies: These firms find a perfect match in OZ investments. Their long-term investment horizon aligns well with the stable, predictable nature of OZ projects, making it an attractive option.&quot;,&quot;type&quot;:&quot;unordered-list-item&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:25,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;7kvv7&quot;,&quot;text&quot;:&quot;REITs: Real Estate Investment Trusts are turning to OZs for their tax efficiency. These trusts see value in diversifying their portfolios with investments that are not just profitable but also community-centric.&quot;,&quot;type&quot;:&quot;unordered-list-item&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:6,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;2gece&quot;,&quot;text&quot;:&quot;Types of Eligible Gains:\nSo, what exactly qualifies as a capital gain for OZ investments? The spectrum is broad. It ranges from stocks and bonds to collectibles and real estate assets. However, it's important to note that profits from selling your primary residence usually don't make the cut.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:24,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;de4qd&quot;,&quot;text&quot;:&quot;Eligibility Spectrum:\nOZ investing isn't limited to just individuals. A variety of entities like C corporations, S corporations, partnerships, trusts, and estates are all eligible players. However, tax-exempt organizations generally find themselves on the sidelines due to their nature.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:21,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;3d9i9&quot;,&quot;text&quot;:&quot;Your Investment Choices:\nWhen it comes to OZ investments, you're in the driver's seat. You decide how much of your eligible gain to invest in a Qualified Opportunity Fund. This flexibility allows you to tailor your investment to fit your financial landscape.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:24,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;dti37&quot;,&quot;text&quot;:&quot;Reporting to Uncle Sam:\nInvesting in a QOF comes with its reporting duties. Keeping Uncle Sam informed is done through IRS Form 8949 for deferring gains and Form 8997 for annual updates on your investment.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:23,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;8vpc8&quot;,&quot;text&quot;:&quot;Conclusion:\nOpportunity Zones offer a unique blend of financial gain and social impact. Understanding who can participate and how to navigate the investment landscape is crucial. For those with eligible gains, OZ investments can be a powerful tool in their financial arsenal, offering not just returns, but also the satisfaction of contributing to community growth.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:11,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}}],&quot;entityMap&quot;:{}}"><div class="" data-block="true" data-editor="6m1bm" data-offset-key="d4lqj-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="d4lqj-0-0"><figure id="figure-t2tfz8wv1lqsitzy3"><img id="t2tfz8wv1lqsitzy3" src="https://cdn.durable.co/blocks/81aHGrrDXroTZKW9hVUe5QmvKMFcOc2oW34o8JMPt3Us8tKzMXtGQOK9bFvytFJs.jpg" alt="" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: 0% center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="0%" data-positionY="undefined"/></figure><p><br data-mce-bogus="1"></p></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="d4lqj-0-0"><span data-offset-key="d4lqj-0-1">Opportunity Zones are the new frontier for investors looking to make a difference while also seeing excellent tax adjusted returns. But it's not a free-for-all. Understanding if you are even eligible to participate is the first hurdle to clear.</span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="d4lqj-0-0"><br></div></div><div class="" data-block="true" data-editor="6m1bm" data-offset-key="8cke6-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="8cke6-0-0"><span data-offset-key="8cke6-0-0"><strong>Busting the Myth</strong>: </span><span data-offset-key="8cke6-0-1">There's a common misconception that anyone can invest in OZs and automatically reap tax benefits. The reality is different. To tap into OZ advantages, you need capital gains—either short-term or long-term. </span></div></div><div class="" data-block="true" data-editor="6m1bm" data-offset-key="824j1-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="824j1-0-0"><br></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="824j1-0-0"><span data-offset-key="824j1-0-0"><strong>Who's In The Game</strong>:</span><span data-offset-key="824j1-0-1"> You must have a golden ticket—eligible capital gains—to get in. This includes a diverse group of taxpayers:</span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="824j1-0-0"><br></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="824j1-0-0"><span style="font-family: var(--body-fontFamily); font-size: calc(18px * var(--body-fontSize, 1)); font-style: var(--body-fontStyle, normal); font-weight: var(--body-fontWeight);" data-offset-key="5d0e4-0-0" data-mce-style="font-family: var(--body-fontFamily); font-size: calc(18px * var(--body-fontSize, 1)); font-style: var(--body-fontStyle, normal); font-weight: var(--body-fontWeight);"><em>Individuals and Family Offices</em>:</span><span style="font-family: var(--body-fontFamily); font-size: calc(18px * var(--body-fontSize, 1)); font-style: var(--body-fontStyle, normal); font-weight: var(--body-fontWeight);" data-offset-key="5d0e4-0-1" data-mce-style="font-family: var(--body-fontFamily); font-size: calc(18px * var(--body-fontSize, 1)); font-style: var(--body-fontStyle, normal); font-weight: var(--body-fontWeight);"> These players are blending their desire for solid returns with a passion for impactful investments. By injecting their gains into OZ projects, they're not just growing wealth; they're fostering community development.</span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="824j1-0-0"><br></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="824j1-0-0"><span style="font-family: var(--body-fontFamily); font-size: calc(18px * var(--body-fontSize, 1)); font-style: var(--body-fontStyle, normal); font-weight: var(--body-fontWeight);" data-offset-key="5mbv3-0-0" data-mce-style="font-family: var(--body-fontFamily); font-size: calc(18px * var(--body-fontSize, 1)); font-style: var(--body-fontStyle, normal); font-weight: var(--body-fontWeight);"><em>Banks</em>:</span><span style="font-family: var(--body-fontFamily); font-size: calc(18px * var(--body-fontSize, 1)); font-style: var(--body-fontStyle, normal); font-weight: var(--body-fontWeight);" data-offset-key="5mbv3-0-1" data-mce-style="font-family: var(--body-fontFamily); font-size: calc(18px * var(--body-fontSize, 1)); font-style: var(--body-fontStyle, normal); font-weight: var(--body-fontWeight);"> For banks, OZ investments are a two-fold win. They satisfy Community Reinvestment Act requirements while enjoying the tax perks of OZ. It's a smart strategy for banks committed to supporting local communities.</span></div></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="c88ir-0-0"><br></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="c88ir-0-0"><span data-offset-key="c88ir-0-0"><em>Life Insurance Companies</em>:</span><span data-offset-key="c88ir-0-1"> These firms find a perfect match in OZ investments. Their long-term investment horizon aligns well with the stable, predictable nature of OZ projects, making it an attractive option.</span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="76mu3-0-0"><br></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="76mu3-0-0"><span data-offset-key="76mu3-0-0"><em>REITs</em>:</span><span data-offset-key="76mu3-0-1"> Real Estate Investment Trusts are turning to OZs for their tax efficiency. These trusts see value in diversifying their portfolios with investments that are not just profitable but also community-centric.</span></div><div class="" data-block="true" data-editor="6m1bm" data-offset-key="8vm0f-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="8vm0f-0-0"><br></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="8vm0f-0-0"><span data-offset-key="8vm0f-0-0"><strong>Types of Eligible Gains</strong>:</span><span data-offset-key="8vm0f-0-1"> So, what exactly qualifies as a capital gain for OZ investments? The spectrum is broad. It ranges from stocks and bonds to collectibles and real estate assets. However, it's important to note that profits from selling your primary residence usually don't make the cut.</span></div></div><div class="" data-block="true" data-editor="6m1bm" data-offset-key="a2llm-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="a2llm-0-0"><br></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="a2llm-0-0"><span data-offset-key="a2llm-0-0"><strong>Eligibility Spectrum</strong>:</span><span data-offset-key="a2llm-0-1"> OZ investing isn't limited to just individuals. A variety of entities like C corporations, S corporations, partnerships, trusts, and estates are all eligible players. However, tax-exempt organizations generally find themselves on the sidelines due to their nature.</span></div></div><div class="" data-block="true" data-editor="6m1bm" data-offset-key="5shn4-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="5shn4-0-0"><br></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="5shn4-0-0"><span data-offset-key="5shn4-0-0"><strong>Your Investment Choices</strong>:</span><span data-offset-key="5shn4-0-1"> When it comes to OZ investments, you're in the driver's seat. You decide how much of your eligible gain to invest in a Qualified Opportunity Fund. This flexibility allows you to tailor your investment to fit your financial landscape.</span></div></div><div class="" data-block="true" data-editor="6m1bm" data-offset-key="3llj7-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="3llj7-0-0"><br></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="3llj7-0-0"><span data-offset-key="3llj7-0-0"><strong>Reporting to Uncle Sam</strong>:</span><span data-offset-key="3llj7-0-1"> Investing in a QOF comes with its reporting duties. Keeping Uncle Sam informed is done through IRS Form 8949 for deferring gains and Form 8997 for annual updates on your investment.</span></div></div><div class="" data-block="true" data-editor="6m1bm" data-offset-key="h41o-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="h41o-0-0"><br></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="h41o-0-0"><span data-offset-key="h41o-0-1">Opportunity Zones offer a unique blend of financial gain and social impact. Understanding who can participate and how to navigate the investment landscape is crucial. For those with eligible gains, OZ investments can be a powerful tool in their financial arsenal, offering not just returns, but also the satisfaction of contributing to community growth.</span></div></div></div>

Who Can Be an Opportunity Zone Investor?

<table border="1" data-mce-style="border-collapse: collapse; width: 100%; border-style: dashed;" style="border-collapse: collapse; width: 100%; border-style: dashed;" data-mce-selected="1"><tbody><tr><td style="width: 50%;" data-mce-style="width: 50%;"><div data-editor-content="{&quot;blocks&quot;:[{&quot;key&quot;:&quot;8d6i9&quot;,&quot;text&quot;:&quot;You have 180 days from the date of your stock sale to invest the capital gains into a Qualified Opportunity Fund (QOF). This is a fund that invests in businesses or real estate within an Opportunity Zone.&quot;,&quot;type&quot;:&quot;ordered-list-item&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[],&quot;entityRanges&quot;:[],&quot;data&quot;:{}}],&quot;entityMap&quot;:{}}"><strong>1.</strong> You have 180 days from the date of your stock sale to invest the capital gains into a Qualified Opportunity Fund (QOF). This is a fund that invests in businesses or real estate within an Opportunity Zone.</div></td><td style="width: 50%;" data-mce-style="width: 50%;"><br></td></tr><tr><td style="width: 50%;" data-mce-style="width: 50%;"><div data-editor-content="{&quot;blocks&quot;:[{&quot;key&quot;:&quot;7k95h&quot;,&quot;text&quot;:&quot;By rolling over your capital gains into a QOF, you can defer paying capital gains tax on that profit until April of 2027.&quot;,&quot;type&quot;:&quot;ordered-list-item&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[],&quot;entityRanges&quot;:[],&quot;data&quot;:{}}],&quot;entityMap&quot;:{}}"><strong>2.</strong> By rolling over your capital gains into a QOF, you can defer paying capital gains tax on that profit until April of 2027.</div></td><td style="width: 50%;" data-mce-style="width: 50%;"><br></td></tr><tr><td style="width: 50%;" data-mce-style="width: 50%;"><br></td><td style="width: 50%;" data-mce-style="width: 50%;"><strong>2A</strong>. You can reduce that tax liability if you sell stocks in 2026 that you have a loss on.<div data-editor-content="{&quot;blocks&quot;:[{&quot;key&quot;:&quot;9ebd2&quot;,&quot;text&quot;:&quot;You can reduce that tax liability if you sell stocks in 2026 that you have a loss on.&quot;,&quot;type&quot;:&quot;ordered-list-item&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[],&quot;entityRanges&quot;:[],&quot;data&quot;:{}}],&quot;entityMap&quot;:{}}"><div data-editor-content="{&quot;blocks&quot;:[{&quot;key&quot;:&quot;5qnut&quot;,&quot;text&quot;:&quot;2B - You may reduce your future tax liability through depreciation losses that you get from the OZ real estate investment.&quot;,&quot;type&quot;:&quot;ordered-list-item&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:3,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}}],&quot;entityMap&quot;:{}}"><span data-offset-key="p21u-0-3"><strong>2B.</strong></span><span data-offset-key="p21u-0-4">&nbsp;You may reduce your future tax liability through depreciation losses that you get from the OZ real estate investment.</span></div></div></td></tr><tr><td style="width: 50%;" data-mce-style="width: 50%;"><br></td><td style="width: 50%;" data-mce-style="width: 50%;"><div data-editor-content="{&quot;blocks&quot;:[{&quot;key&quot;:&quot;db8r&quot;,&quot;text&quot;:&quot;2C - There is pending federal legislation which would reduce the tax liability by 10-15% for investments made in 2023.&quot;,&quot;type&quot;:&quot;ordered-list-item&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:3,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}}],&quot;entityMap&quot;:{}}"><strong>2C.</strong><span data-offset-key="p21u-0-6">&nbsp;There is pending federal legislation which would reduce the tax liability by 10-15% for investments made in 2023.</span></div></td></tr><tr><td style="width: 50%;" data-mce-style="width: 50%;"><div data-editor-content="{&quot;blocks&quot;:[{&quot;key&quot;:&quot;cokhh&quot;,&quot;text&quot;:&quot;By keeping your investment in the OZ tax structure for 10+ years you'll get a \&quot;stepped-up basis\&quot; when you sell. This means that any appreciation in the value of your investment will be tax-free when you sell it and you will not have to recapture the depreciation losses that you took during the holding period.&quot;,&quot;type&quot;:&quot;ordered-list-item&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[],&quot;entityRanges&quot;:[],&quot;data&quot;:{}}],&quot;entityMap&quot;:{}}"><strong>3</strong>. By keeping your investment in the OZ tax structure for 10+ years you'll get a "stepped-up basis" when you sell. This means that any appreciation in the value of your investment will be tax-free when you sell it and you will not have to recapture the depreciation losses that you took during the holding period.</div></td><td style="width: 50%;" data-mce-style="width: 50%;"><br></td></tr><tr><td style="width: 50%;" data-mce-style="width: 50%;"><br></td><td style="width: 50%;" data-mce-style="width: 50%;"><br></td></tr></tbody></table><p><br></p><figure id="figure-zd15oi8rhflqsgoh3t"><img id="zd15oi8rhflqsgoh3t" src="https://cdn.durable.co/blocks/0yccht2q1dQaHNpQ1cHLaVJxyaRF9Y9nL2U5IhWnGKIMGr0BO0oB9fnEhs1hxZSx.png" alt="" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="undefined" data-positionY="undefined"/></figure><p><br></p><p>Let's say you just sold some stocks and made a nice profit. You're thinking about investing that money in an Opportunity Zone (OZ) to take advantage of the tax benefits.<br></p><p>First, you need to understand that an Opportunity Zone is a low-income census tract designated by the government to encourage long-term investment and economic growth. The idea is to incentivize people like yourself to invest in these areas, which in turn can help revitalize the community and create jobs.</p><p><br>Now, here's where it gets interesting for you. When you sell stocks and make a profit, you usually have to pay capital gains tax on that profit. But if you invest those gains into an Opportunity Zone, you can defer and even reduce your tax bill.</p><p><br>These tax benefits typically increase the tax adjusted IRR by about 5% on a 10 year hold.</p><p><br>So, by investing in an Opportunity Zone, you can potentially save a lot on taxes while also making a positive impact on a struggling community.&nbsp;</p><p><br>Just make sure to consult with a financial advisor or tax professional to ensure you're making the best decision for your unique situation.</p>

Lifecycle of an Opportunity Zone Investment

<p>Opportunity Zones are designated areas identified by the government to stimulate investment and development in economically distressed communities. By investing in these zones, investors can access unique tax advantages.</p><p><br>When you have capital gains from selling an asset, such as a business, stock, or cryptocurrency, these gains can be invested into a Qualified Opportunity Fund (QOF). This fund, in turn, invests in real estate or businesses within Opportunity Zones.</p><p><br>The primary tax benefit is the deferral of capital gains taxes until April of 2027, allowing for potential growth and reinvestment in the interim. This also acts like an interest free loan from the IRS. It is the benefit that many people focus on (because everyone like instant gratification!) but it is actually the smallest of all the OZ tax benefits.</p><p><br>The biggest tax benefits come for investments held in the QOF for a minimum of ten years, there is an elimination of taxes on the appreciation of that investment. Any depreciation losses taken on the real estate holdings during the 10+ year hold also get forgiven (no recapture) at the time of sale.</p><p><br>Beyond the tax incentives, investing in Opportunity Zones also contributes to the revitalization of underdeveloped areas, aligning financial goals with community development. For those interested in real estate investment, incorporating the Opportunity Zone tax structure can offer significant benefits both financially and socially.</p>

OZ 101 - Investing in a Qualified Opportunity Zone Fund

US National Capitol in Washington, DC. American landmark.

<div data-editor-content="{&quot;blocks&quot;:[{&quot;key&quot;:&quot;51vrv&quot;,&quot;text&quot;:&quot;In the wake of the Great Recession's uneven recovery, the bipartisan concept of Opportunity Zone legislation emerged, aiming to assist traditionally underprivileged communities. This innovative incentive structure motivates investors to reinvest capital gains from successful ventures into long-term projects in struggling areas.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;9fr47&quot;,&quot;text&quot;:&quot;History of Opportunity Zones&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:28,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;2a1kj&quot;,&quot;text&quot;:&quot;Opportunity Zones trace their origins to a 2015 paper, \&quot;Unlocking Private Capital to Facilitate Economic Growth in Distressed Areas,\&quot; by economists Kevin Hassett and Jared Bernstein. The current policy, rooted in the bipartisan Investing in Opportunity Act, was advocated by Senators Tim Scott and Cory Booker, and Representatives Pat Tiberi and Ron Kind. Introduced in 2016 and reintroduced in 2017, it became law as part of the Tax Cuts and Jobs Act of 2017.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;79gin&quot;,&quot;text&quot;:&quot;In 2018, governors nominated Opportunity Zones in their states and territories, which the Treasury Department officially recognized. The IRS set final regulations in December 2019.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;9c32p&quot;,&quot;text&quot;:&quot;Intent of the Legislation&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:25,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;glmb&quot;,&quot;text&quot;:&quot;Opportunity Zones aim to mobilize capital that might otherwise remain untapped due to reluctance to incur capital gains taxes. The initiative seeks to boost economic growth and job creation in low-income areas through investment incentives.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;f9tco&quot;,&quot;text&quot;:&quot;A Very High-Level Overview of How It Is Being Used&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:50,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;cathk&quot;,&quot;text&quot;:&quot;Since its inception, Opportunity Zones have spurred investments across various sectors, including real estate, small businesses, infrastructure, renewable energy, and technology.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;co5lr&quot;,&quot;text&quot;:&quot;Key Insights and Statistics&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:27,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;14aa8&quot;,&quot;text&quot;:&quot;Diverse Designation Methods: The U.S. has 8,700 OZ census tracts designated as Opportunity Zones, chosen by state governors based on 2010 census data. Selection methods varied, with some being more favorable for real estate investment and development.&quot;,&quot;type&quot;:&quot;unordered-list-item&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;a368c&quot;,&quot;text&quot;:&quot;Impact on Life Expectancy: A notable correlation exists between one's zip code and life expectancy. Place-based investments in Opportunity Zones can significantly influence areas in dire need of long-term, patient investment.&quot;,&quot;type&quot;:&quot;unordered-list-item&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;5o8b1&quot;,&quot;text&quot;:&quot;Historical Efficacy: In its initial years, the Opportunity Zones program's development achievements surpassed those of the New Markets Tax Credit program over two decades, marking it as the most effective place-based development tool in U.S. history.&quot;,&quot;type&quot;:&quot;unordered-list-item&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;1v8d9&quot;,&quot;text&quot;:&quot;Conclusion&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[{&quot;offset&quot;:0,&quot;length&quot;:10,&quot;style&quot;:&quot;BOLD&quot;}],&quot;entityRanges&quot;:[],&quot;data&quot;:{}},{&quot;key&quot;:&quot;c9g5d&quot;,&quot;text&quot;:&quot;While the full impact of Opportunity Zones is still being assessed, early indicators suggest its potential as a powerful economic revitalization tool. Continuous monitoring and adjustments are crucial to ensure the program meets its intended objectives, transforming lives and communities in the process.&quot;,&quot;type&quot;:&quot;unstyled&quot;,&quot;depth&quot;:0,&quot;inlineStyleRanges&quot;:[],&quot;entityRanges&quot;:[],&quot;data&quot;:{}}],&quot;entityMap&quot;:{}}"><div class="" data-block="true" data-editor="7hiaf" data-offset-key="3a073-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="3a073-0-0"><span data-offset-key="3a073-0-0"><img src="https://img1.wsimg.com/isteam/ip/82f594c9-8766-43da-bfd6-172124a3b238/Capital-d994679.jpg/:/cr=t:0%25,l:0%25,w:100%25,h:100%25/rs=w:1280" alt="US Capital" data-mce-src="https://img1.wsimg.com/isteam/ip/82f594c9-8766-43da-bfd6-172124a3b238/Capital-d994679.jpg/:/cr=t:0%25,l:0%25,w:100%25,h:100%25/rs=w:1280">In the wake of the Great Recession's uneven recovery, the bipartisan concept of Opportunity Zone legislation emerged, aiming to assist traditionally underprivileged communities. This innovative incentive structure motivates investors to reinvest capital gains from successful ventures into long-term projects in struggling areas.</span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="3a073-0-0"><br></div></div><div class="" data-block="true" data-editor="7hiaf" data-offset-key="ep0f2-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="ep0f2-0-0"><strong>History of Opportunity Zones</strong></div></div><div class="" data-block="true" data-editor="7hiaf" data-offset-key="c8b2r-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="c8b2r-0-0"><span data-offset-key="c8b2r-0-0">Opportunity Zones trace their origins to a 2015 paper, "Unlocking Private Capital to Facilitate Economic Growth in Distressed Areas," by economists Kevin Hassett and Jared Bernstein. The current policy, rooted in the bipartisan Investing in Opportunity Act, was advocated by Senators Tim Scott and Cory Booker, and Representatives Pat Tiberi and Ron Kind. Introduced in 2016 and reintroduced in 2017, it became law as part of the Tax Cuts and Jobs Act of 2017.</span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="c8b2r-0-0"><br></div></div><div class="" data-block="true" data-editor="7hiaf" data-offset-key="ff6en-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="ff6en-0-0"><span data-offset-key="ff6en-0-0">In 2018, governors nominated Opportunity Zones in their states and territories, which the Treasury Department officially recognized. The IRS set final regulations in December 2019.</span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="ff6en-0-0"><br></div></div><div class="" data-block="true" data-editor="7hiaf" data-offset-key="2he8k-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="2he8k-0-0"><strong>Intent of the Legislation</strong></div></div><div class="" data-block="true" data-editor="7hiaf" data-offset-key="8mqjs-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="8mqjs-0-0"><span data-offset-key="8mqjs-0-0">Opportunity Zones aim to mobilize capital that might otherwise remain untapped due to reluctance to incur capital gains taxes. The initiative seeks to boost economic growth and job creation in low-income areas through investment incentives.</span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="8mqjs-0-0"><br></div></div><div class="" data-block="true" data-editor="7hiaf" data-offset-key="c5co2-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="c5co2-0-0"><strong>A Very High-Level Overview of How It Is Being Used</strong></div></div><div class="" data-block="true" data-editor="7hiaf" data-offset-key="fc4hl-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="fc4hl-0-0"><span data-offset-key="fc4hl-0-0">Since its inception, Opportunity Zones have spurred investments across various sectors, including real estate, small businesses, infrastructure, renewable energy, and technology.</span></div></div><div class="" data-block="true" data-editor="7hiaf" data-offset-key="c7cvm-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="c7cvm-0-0"><br></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="c7cvm-0-0"><strong>Key Insights and Statistics</strong></div></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="4c18g-0-0"><span data-offset-key="4c18g-0-0"><em>Diverse Designation Methods</em>: The U.S. has 8,700 OZ census tracts designated as Opportunity Zones, chosen by state governors based on 2010 census data. Selection methods varied, with some being more favorable for real estate investment and development.</span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="999qr-0-0"><br></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="999qr-0-0"><span data-offset-key="999qr-0-0"><em>Impact on Life Expectancy</em>: A notable correlation exists between one's zip code and life expectancy. Place-based investments in Opportunity Zones can significantly influence areas in dire need of long-term, patient investment.</span></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="d8657-0-0"><br></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="d8657-0-0"><span data-offset-key="d8657-0-0"><em>Historical Efficacy</em>: In its initial years, the Opportunity Zones program's development achievements surpassed those of the New Markets Tax Credit program over two decades, marking it as the most effective place-based development tool in U.S. history.</span></div><div class="" data-block="true" data-editor="7hiaf" data-offset-key="bseqq-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="bseqq-0-0"><br></div><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="bseqq-0-0"><strong>Conclusion</strong></div></div><div class="" data-block="true" data-editor="7hiaf" data-offset-key="5v37o-0-0"><div class="public-DraftStyleDefault-block public-DraftStyleDefault-ltr" data-offset-key="5v37o-0-0"><span data-offset-key="5v37o-0-0">While the full impact of Opportunity Zones is still being assessed, early indicators suggest its potential as a powerful economic revitalization tool. Continuous monitoring and adjustments are crucial to ensure the program meets its intended objectives, transforming lives and communities in the process.</span></div></div></div>

Origin of Opportunity Zones: Legislation & Impact

Opportunity Zone Headquarters