Opportunity Zone Tax Reduction

Defer capital gains tax with Opportunity Zones under the Tax Reform Act of 2017. The recently passed Tax Reform Act includes a potential tax break for long-term investors. An investor may defer capital gains taxes on the sale of an appreciated asset by investing the gain proceeds into an opportunity zones asset. These taxes can potentially be deferred until December 31, 2026, or the date of a sale (whichever is earlier). Original capital gains tax is reduced over time, and if held long enough, new appreciation on the investment will avoid tax completely.

For example:

An investor sells an asset and generates a capital gain. The capital gains from that investment must be reinvested within 180 days into a designated Opportunity Zone (OZ). An OZ is a specially designated census tract. Large parts of the U.S. are eligible for designation, including many commercial, industrial and residential areas. Click here for a map.

If the investment is held, the capital gains liability on the original investment will be reduced by 10% after five years and by 15% after seven years. After 10 years, the new capital gains taxes generated from the opportunity fund investment are reduced to zero. Click here for more information from the IRS.

Please call us now to find out if this is a suitable strategy for you at (330) 644-9000.

Asset Management and Financial Planning services provided by Andrews Wealth Management, LLC – A Registered Investment Advisor.
This website does not represent an offer for services outside the State of Ohio.
Copyright © 2019 Andrews Advisors, Inc.

Site Design by Communication Union Inc.