The Qualified Opportunity Zones are designated census tracts, which were nominated by the governors of every state and certified by the Treasury Department. Investors with capital gains in a particular tax year can invest their gains in Opportunity Zones through 2026, and receive favorable tax treatment as a result.
Opportunity Zones are a useful option for investors facing large capital gains taxes on any type of investment or asset. The program is designed to incentivize people to sell appreciated assets and productively deploy their capital in a manner that will significantly contribute to economic development. Instead of paying the tax on realized capital gains, investors may deploy their capital gains into Opportunity Zones, following IRS guidelines, and thereby achieve very substantial tax savings.
What Types of Tax Benefits Can Qualified Opportunity Zones Offer? There are three benefits: (1) deferring payment of capital gains taxes that would otherwise be due, until 2026; (2) reducing those taxes by up to 15%; and (3) avoiding capital gains taxes altogether, on gains achieved with the funds invested into an Opportunity Zone. The three of these benefits together create a once-in-a-generation or maybe even an once-in-a-lifetime incentive worth studying carefully.
Palm Beach County's Business Loans, Bonds can further enhance an investment in an Opportunity Zone. Information on both programs are outlined below. Please contact Business Investments staff to discuss your project and learn more about the various resources available to support economic development in Palm Beach County .