Providing significant tax benefits to investors while creating positive impact in local communities
Multifamily rental demand is skyrocketing across the United States, and opportunity zones (OZs) are answering that demand with robust transformations.
OZs connect private capital with economic growth
Opportunity zones were created as part of the Tax Cuts and Job Acts of 2017 to stimulate long-term private investments in low-income urban and rural communities nationwide.
By providing tax benefits to investors, opportunity zone fund investments promote economic growth in distressed areas. Investors benefit from tax-deferral and exclusion.
How are opportunity zones determined?
The governor of each state and five U.S. territories designated up to 25% of eligible census tracts as opportunity zones, resulting in nearly 9,000 active opportunity zones across the country.
Capital Square’s opportunity zone projects create economic revitalization across the South, while assisting investors with tax deferral and exclusion strategies and favorable returns.
Reinvesting capital gains for partial or complete elimination of tax
Capital gains from the sale of any asset can be reinvested in a qualified opportunity zone fund to achieve tax deferral and exclusion. Capital gains may have resulted from the sale of stocks, bonds, mutual funds, real estate, a business, art, cryptocurrency or other assets.
Defer or fully exclude (forgive) capital gains taxes
Defer capital gains taxes from initial sale of stocks, bonds, real estate, businesses and other assets by investing in a qualified opportunity zone fund.
Exclude (forgive) capital gains taxes from fund appreciation if held for at least 10 years.
How to invest in opportunity zones
- Invest capital gains from the sale of any asset into a qualified opportunity zone fund within 180 days.
- On your tax return, indicate that capital gains from your sale were reinvested in a qualified opportunity zone fund.