Employee Benefits Blog

Posts tagged Opportunity Zones

Read More

Deferring or Reducing Tax Using Qualified Opportunity Zones

Subchapter Z of the Internal Revenue Code, created by the Tax Cuts and Job Act of 2017, provides taxpayers with incentives for investing in “Qualified Opportunity Zones.” These are specifically designated areas in need of economic development that are nominated by states and certified by the Secretary of the U.S. Treasury. Taxpayers who invest certain kinds of capital gains into these Qualified Opportunity Zones (QOZs) may be able to defer, and in some cases even permanently exclude, these gains from their taxable income. We described these benefits very generally in an earlier article. The article you are reading goes into greater detail regarding the qualifications and benefits, and incorporates some recent guidance provided by the IRS.