A Qualified Opportunity Zone (QOZ) is an economically distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment.

-         Tax Benefits: Investors who reinvest otherwise taxable capital gains into Qualified Opportunity Funds (QOFs) can receive a                 temporary deferral on the tax liability for the invested capital gains, and the appreciation of the investment in the QOF may               be eligible for permanent exclusion from income.

-         Qualified Opportunity Funds (QOFs): To take advantage of the tax benefits, investors must invest their otherwise taxable                     capital gains into Qualified Opportunity Funds (QOFs), which are investment vehicles explicitly created for investing in                         Opportunity Qualified Zones. QOFs can be structured as partnerships or corporations and must invest at least 90% of their                 assets in qualifying Opportunity Zone properties or businesses.

-         Eligible Investments: QOFs can invest in various assets within Opportunity Zones, including real estate development,                          housing projects, infrastructure improvements, operating businesses, and startups.

-         Long-Term Investment Opportunity Zones: QOZ businesses generally require a long-term commitment. To maximize the tax            benefits, investors must hold their investment in a QOZ business for at least ten years. This focus on long-term investments              can align nicely with businesses with stable growth prospects or projects with extended development timelines.

Determine if your business operates or intends to operate within a designated Opportunity Zone. You can find a list of designated Opportunity Zones on the IRS Website or contact us here on our website for more information.