Opportunity zones were created as part of the Tax Cuts and Job Acts of 2017 to stimulate long-term private investments in low-income urban and rural communities. By providing tax benefits, opportunity zone investments promote economic growth in qualified opportunity zones.

Opportunity Zones Connect Private Capital with Economic Growth

Qualified opportunity zone fund (QOF) investments can provide tax deferral and the potential for permanent elimination of capital gains taxes.

• Initial Tax Deferral: Defer capital gains taxes from initial sale of stocks, bonds, real estate, businesses and other assets, by investing in a QOF.

• Complete Elimination: Exclude (forgive) capital gain taxes from QOF appreciation if held for at least 10 years.

Capital gains from the sale of any type of appreciated asset can be reinvested in a QOF to achieve tax deferral and exclusion of capital gains taxes.

• Stocks

• Bonds

• Mutual Funds

• Real Estate

• Business Sale

• Other assets

• Art

• Bitcoin

Designed to Promote Economic Growth

The governor of each state and five U.S. territories designated up to 25% of eligible census tracts as a qualified opportunity zone, resulting in nearly 9,000 active opportunity zones across the country.

Qualified opportunity zones may invest in:

• Real property, including land, real estate developments, renovations or repositioning

• Businesses

• Equipment

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This article originally appeared on Capital Square's website.