Don’t Miss Deadline For Opportunity Zone Tax Benefits

The clock is ticking on a major benefit of the Opportunity Zone program.
On December 31, 2019, the 15 percent capital gain tax discount benefit under the Opportunity Zone regulations expires as the seven-year timeframe necessary to receive such 15 percent capital gain tax discount benefit by the year 2026 becomes unattainable.
This will leave the remaining benefits of the Opportunity Zone program for tax payers at a 10 percent capital gain tax discount benefit on the taxes to be paid in 2026 on capital gains invested into Qualified Opportunity Zone Funds (QOZF) and an exemption on any new gain realized from the investment on the capital gain initially invested after 10 years.
While the loss of the five percent capital gain tax discount benefit may seem small in comparison to the overall benefits, it still it a third of the upfront deferral benefit, and it has taxpayer investors on the hunt for QOZFs with viable projects in Opportunity Zones.