During the first quarter of 2018, Washington took center stage as corporate and individual tax relief took debate over the passage of a new federal tax reform legislation. What went un-noticed was a smaller section of the new law, which may have a significant impact in channeling investments into distressed areas throughout the county. Certain locations in our home of Jersey City, New Jersey may f
During the first quarter of 2018, Washington took center stage as corporate and individual tax relief took debate over the passage of a new federal tax reform legislation. What went un-noticed was a smaller section of the new law, which may have a significant impact in channeling investments into distressed areas throughout the county. Certain locations in our home of Jersey City, New Jersey may fit perfectly for this new law.
The new law creates the “Opportunity Zone Program,” which establishes preferential tax treatment for unrealized capital gains that are reinvested in to be determined “qualified opportunity zones.” To determine these zones, the law has instructed governors of each state to identify eligible pools of both low-income, high-poverty census tracts.
What’s important to our investors is that this new law will allow corporations and other entities to establish Opportunity Funds. Opportunity Funds are created for the purpose of investing in the qualified opportunity zone properties. The tax reform will both allow investors to benefit economically, and our state to benefit from new economic development for its citizens.
As outlined by the Economic Innovation Group, www.eig.org , investments made in a qualified fund will receive preferential tax treatment, including but not limited to:
To take advantage of the special tax treatment created under this program, taxpayers must roll over non-opportunity zone gains before Dec. 31, 2026.