Housing in Opportunity Zones

National Association of Home Builders

Opportunity Zones (OZs) are an economic development tool created by the federal government in the 2017 Tax Cuts and Jobs Act. Investments made into Opportunity Zones go through a qualified opportunity fund (QOF). QOFs can take the form of a corporation or partnership. Two tax incentives for investments are provided in an Opportunity Zone:

  • It allows taxpayers to defer federal taxes owed on any capital gains invested in a QOF. Investors may be eligible to reduce federal taxes owed on the deferred capital gains over time.
  • The law excludes from gross income the post-acquisition gains on investments by QOFs that are held for at least 10 years.

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