Please join James Lang as he discusses the New Qualified Opportunity Zones (capital gains deferral and basis).
The new tax reform legislation, the Tax Cuts and Jobs Act (TCJA), created a significant new economic development tool alongside a meaningful tax deferral and abatement mechanism, “qualified opportunity zones.” The new provision provides a flexible deferral mechanism for short and long term capital gains for current investments in nearly all asset classes.
TCJA legislation adopts an important and unheralded new tax incentive program proposed by Senator Tim Scott and Representative Pat Tiberi in the form of Qualified Opportunity Zones in a new Section 1400Z of the Internal Revenue Code of 1986, as amended. Due to the broad base of potential investors and eligible projects, property, and transactions, this program has the ability to provide substantial returns to investors, administrative opportunities for funds, and subsidy for eligible projects and businesses.