A new Federal program encourages taxpayer investment in Opportunity Zones (low-income economically depressed areas) in exchange for tax breaks. In order to invest, taxpayers must utilize a qualifying intermediary (a Qualified Opportunity Fund) which keeps at least 90 percent of its assets in qualified Opportunity Zone property, which can be business property, stocks or partnerships.
Incentives include tax deferred gains on the sale of investments and possible permanent tax exclusions from gains that are held or reinvested under the federal regulations. Although there are many rules to be followed, the tax breaks can be significant.
For more information, see Frank G. Sweeney’s article in the September 9, 2019 issue of NJ Biz.