{"id":5100,"date":"2021-03-18T20:04:58","date_gmt":"2021-03-18T20:04:58","guid":{"rendered":"https:\/\/caliberfunds.co\/?p=5100"},"modified":"2023-04-13T21:18:27","modified_gmt":"2023-04-13T21:18:27","slug":"what-is-an-opportunity-zone-and-what-are-its-benefits","status":"publish","type":"post","link":"https:\/\/caliberfunds.co\/what-is-an-opportunity-zone-and-what-are-its-benefits\/","title":{"rendered":"What is an Opportunity Zone and what are its Benefits?"},"content":{"rendered":"\n

What is an Opportunity Zone? Created in 2017, as part of the Tax Cuts and Jobs Act<\/a>, this bill helps stimulate economic growth in distressed communities across the country. To achieve this, Congress passed special tax incentives to encourage investors to recognize a capital gain from the sale of an asset which they otherwise may not have sold due to the tax liability. <\/p>\n\n\n\n

To capture these tax benefits, investors must contribute a portion, or all of their capital gains, to a Qualified Opportunity Zone Fund (QOF).  The QOF then invests in one or more of over 8700 Qualified Opportunity Zones around the United States. The investment comes in the form of real estate development, as well as investing directly into a Qualified Opportunity Zone Business (QOZB).<\/p>\n\n\n\n

The various opportunity zones around the country are hand-selected by state governors based on 2010 Median Household Income data. These designations are approved by the Secretary of the US Treasury, via the Internal Revenue Service (IRS).<\/p>\n\n\n\n

You should research these investment opportunities because:<\/p>\n\n\n\n