Opportunity Zone Deadlines and Capital Gains Tax Changes

May 21, 2021

The Opportunity Zone program continues to be a great way for investors to defer, reduce, and even eliminate capital gains tax while making a positive impact in lower income communities across the United States. In light of everything going on today, it’s an actionable, innovative solution to make a positive impact in communities across the country.

June 29, 2021: The Opportunity Zone rules provide 180 days for investors to roll over qualifying capital gains into a Qualified Opportunity fund. June 29th marks 180 days from the end of 2020. This date is expected to be the deadline to invest for certain investors with gains associated with year-end transactions, such as Section 1231 gains, RIC and REIT capital gains distributions.

December 31, 2021: The final date for investors to place capital into an OZ fund and be eligible for the 10% basis step-up, which grants the taxpayer a 10% reduction in the amount of capital gains recognized and potentially the tax due. After this date, investment in Qualified Opportunity funds will still be attractive for many reasons, but this particular benefit will be forgone.We’ll be discussing this topic, as well as recently proposed capital gains rates changes and Opportunity Zone rule changes our upcoming webinar. If you’d like to learn more, please RSVP below.

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