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Opportunity Zones

Understanding the Opportunity Zones Program

The Tax Cuts and Jobs Act of 2017 (TCJA) created the “Opportunity Zones” (OZ) program to encourage private investment in low-income communities throughout the country. These areas are designed as Qualified Opportunity Zones (QOZ). A Qualified Opportunity Fund (QOF) is an investment vehicle organized as a corporation or a partnership for the purpose of investing in a QOZ property.

HOW WE HELP YOU

Freed Maxick has the expertise to help you take advantage of this opportunity. We can assist any of the following entities who are eligible to participate: fund sponsors, fund investors, real property owners and developers, and businesses.

Federal Tax Benefits

The federal tax on capital gains timely invested in a QOF are deferred until the QOF investment is sold or exchanged, or Dec. 31, 2026, whichever is earlier.

10% of the deferred capital gain is permanently excluded from federal taxable income after holding the QOF investment for 5-years and an additional 5 percent is permanently excluded from federal taxable income after holding the QOF investment for 7-years.

Any appreciation in the QOF investment is permanently excluded from federal taxable income when the QOF investment is sold or exchanged after holding the QOF investment for at least 10-years.

Your Experts

Donnely L. Warrant, CPA

Director

Mark A. Stebbins, CPA

Director

Are you looking for Opportunity Zone Consulting from a New York CPA firm?

If so, simply fill out the form below or call us at 716.847.2651 for more information.