Investments in businesses located in designated Opportunity Zones have to go through Qualified Opportunity Funds (QOF)

Only recognized capital gains for federal income tax purposes can benefit from the opportunity zones tax breaks. This means that even foreign investors with capital gains subject to US federal income tax can utilize the program to save taxes.

Tax deferral and reduction

Original capital gain taxes of investments placed into a Qualified Opportunity Fund are deferred and discounted after 5 and after 7 years.

Tax-free investment

No capital gains tax on opportunity zone investment if held for 10 years or more.

Self-certified Opportunity Funds

A new QOF does not need official approval from the IRS. However, certain requirements and forms apply.

Incredible fundraising opportunity

Tax benefits encourage flow of investments into opportunity zone funds and therefore to businesses located in those zones.

Foreign investments

Foreigners with US capital gains can benefit from the tax breaks.