Opportunity Zones are designated low-income areas that offer significant tax benefits to investors.
In this article, we will discuss what investors need to know before investing in Opportunity Zones.
Understanding Opportunity Zones
Opportunity Zones were created as a part of the 2017 Tax Cuts and Jobs Act to encourage economic development in distressed communities. These zones offer tax incentives to investors who invest in them. The tax benefits include the following:- The deferral of capital gains taxes.
- Reduction in capital gains taxes.
- Tax-free growth of an investment.