Lumicre · Brokerage & Principal Advisory
Opportunity Zone Guide.
Not tax advice. Consult your tax advisor before making a decision.
An Opportunity Zone investment
Opportunity Zone investment involves a Qualified Opportunity Fund, eligible capital gains, fund formation and qualifying property.
Opportunity Zone tax framework · 2019
The framework established by the 2017 tax legislation allowed reinvesting eligible gains in a Qualified Opportunity Fund within 180 days, with deferral ending at the earlier of a sale of the fund interest or December 31, 2026 under that framework.
The historical framework included time-dependent basis adjustments after five and seven years and a potential exclusion of qualifying fund appreciation after a ten-year holding period. These historical descriptions do not establish eligibility for a new investment today; consult your tax adviser on applicable law, deadlines and fund requirements.
In a historical 2018 hypothetical, an asset bought for $50 is sold for $150 and the $100 gain is reinvested. Its comparison assumes 7% annual appreciation and a 23.8% capital-gains tax rate. These are illustrative historical assumptions, not projected returns or current tax advice.
Formation and timeline
Confirm eligibility with advisers, evaluate the fund and property requirements, document the investment and monitor compliance. Do not rely on historic examples as current tax advice.