The Qualified Opportunity Zone incentive is part of the Tax Cuts & Jobs Act of 2017 and is the largest new federal economic development program enacted in years. There are 181 Opportunity Zones in Cook County that offer several tax benefits to investors that could spur substantial new capital influx into targeted neighborhoods within Chicago and Cook County.Search Maps Get Deals Read News
The Qualified Opportunity Zone (“QOZ”) program seeks to encourage investment and stimulate economic growth in certain distressed communities by providing various federal income tax benefits to taxpayers who invest in real estate and businesses that operate within these zones.
When you invest your capital gains in a Qualified Opportunity Fund, you can defer those gains until December 31, 2026..
When you invest your capital gains in a Qualified Opportunity Fund, you can reduce your capital gains by up to 15% after a 7-year holding period..
When you invest your capital gain in a Qualified Opportunity Fund, you can defer those gains until December 31, 2026
After a 5-year holding period taxable basis decreases by 10%
After a 7-year holding period taxable basis decreases by 15%
After a 10-year hold Opportunity Fund gain become tax exempt (exclusive of original capital gains)
The total number of census tracts certified as Opportunity Zones by the U.S. Treasury.
Potential unrealized capital gains eligible for Qualified Opportunity Fund investment and tax treatment.
Treasury Secretary Steven Mnuchin’s estimate of private capital that will flow into Opportunity Zones.
OZ investors no longer need to be concerned about a possible change in zone boundaries after the 2020 census. The Internal Revenue Service has issued a statement that says opportunity zone boundaries as they were established by the 2017 tax cut law will not be changed by any finding of the 2020 census. In the […]
May 14, 2021
Since the new 2020 census tracts were released, OZ investors have wondered if they will affect current and future OZ boundaries. The short answer is – we don’t know yet. For more information on what to expect and when we can expect clarification please see the article below from opportunityzone.com: OZ Roadmap – Navigating the […]
March 25, 2021
The substantial tax advantages provided by the Tax Cuts and Jobs Act (TCJA) will likely lead to a significant influx of capital to multifamily investments in Opportunity Zones. In addition to traditional equity and large institutional investors, Opportunity Zones have opened the door to a whole different group of investors. With this new program, small […]
February 18, 2021