Opportunity Zones and Funds!!!!
So the TCJA has created a new monster called “Opportunity Zones”.
The gist is this (as best I can understand it): If you have $1m of stock and you sell it at a gain, you can reinvest the proceeds (within 180 days) in an “Opportunity Zone”. Any gain on the sale of the stock is deferred.
Once you invest in an OF (which, in turn, invests 90% of its capital in an OZ), if you hold the OF for five years, then you reduce your capital gain liability by 10%. If you hold it for seven years, you reduce capital gain liability by 15%. If you hold it for ten years, you recognize no capital gains upon disposition of the OF.
Here is a map of these so-called “Opportunity Zones”.
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