Investors can get tax breaks for investing in opportunity zones: Treasury


For investors, the opportunity zones come with several tax advantages. Capital gains placed in a certified opportunity zone fund will not be taxed through the end of 2026 or when the investment is sold, whichever comes first. Any gains from the fund are permanently shielded from taxes if the investment has been held for 10 years. In addition, the initial investment will be discounted by up to 15 percent for tax purposes after seven years.

The guidance comes just weeks before the midterm elections. The GOP has struggled to sell its tax law to voters as the party tries to hold onto its House majority.

The proposed regulations clarify that only capital gains are eligible for preferred tax treatment. Investors who can participate include individuals, corporations, businesses, REITs and estates and trusts. Treasury said additional guidance will be released before the end of the year, with final rules likely to come in the spring.

“We felt it was important to issue the core guidance now that’s needed to get the funds up and operating and not wait until we have every question answered,” said a senior Treasury official who declined to be named.

Source link

Products You May Like

Articles You May Like

CNBC’s coverage of Barack Obama’s inauguration
Some recalled IRS employees aren’t showing up to work amid the shutdown
Adidas CEO says biggest concern is Brexit impact on European economy
Here’s what modern newsrooms need to look like in order to survive
The largest beer company in the world upgraded at RBC after debt refinancing

Leave a Reply

Your email address will not be published. Required fields are marked *