Investment Update

JAN 2019

 

Your FP/CM Newsletter – January 2019

QUALIFIED OPPORTUNITY ZONE INVESTING
VINCE MARSDEN, Partner, SVP of Financial Planning

 

The 2017 Tax Cuts and Jobs Act (TCJA) established the Qualified Opportunity Zone (QOZ) program, which provides tax incentives for long term private investing in economically distressed geographical areas throughout the U.S.

Under the new program taxpayers with realized capital gains may defer, and possibly reduce, the amount of income tax to be paid on those gains.

 

HOW DOES THE PROGRAM WORK?

  • Once a capital gain has been realized, the taxpayer has 180 days to invest some or all of the gain in a Qualified Opportunity Zone Fund (QOF), which in turn invests the money in QOZ property. A QOF must invest at least 90% of its assets in QOZ property, such as real estate projects.

 

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