Tax Breaks Continue For Opportunity Zone Investing in 2021

Opportunity Zone Investments offer multipart capital gains tax breaks which are increasing in popularity for clients looking to reduce tax liabilities as well as investors looking to increase the social impact of their investments. Continue reading and/or visit our Freedom Opportunity Fund page to learn more about the fund Nick created along with additional details about Opportunity Zone Investing. Below are three core features of tax breaks associated with Opportunity Zone Investing – one of the biggest of which comes at the end of 2021.

The most appealing tax break allows you to pay no tax on capital gains realized in an Opportunity Zone Fund when your fund investment is held for at least 10 years. The second benefit allows you to roll over gains from other investments into an opportunity zone and defer paying taxes on rolled over gains until the end of 2026. The third benefit – which is where the deadline of 2021 comes into play – is that the basis in your rolled over gain, when it’s taxed in 2026, is increased by 10% if you’ve been in the opportunity zone fund for five years, or by 15% if you’ve been in the fund for at least seven years.