“Specifics and additions of opportunity zones have been released by the United States Treasury department, after much anticipation from investors. Opportunity zones encourage investment and development in distressed areas in the form of tax incentives. It is advised to make haste on these zones by the end of 2019, as this will ensure the full 15% tax basis step-up.”

Highlights include:

• Borrowed funds can be used.
• Cost of land is not included.
• Includes deferral of tax on prior gains (as late as 2026)
• Tax forgiveness on gains on investments of at least 10 years.
• Qualified Opportunity Funds allow holding investments through 2047 without losing tax benefits.
• 70% of business property must be in designated opportunity area.
• Proceeds from sale of stock or business must be put into the opportunity fund within 180 days.
• There must be a plan for the zone for businesses to hold working capital for 30 months.