In December 2017, Congress passed the Tax Cuts and Jobs Act, which, among many other wide-ranging tax reforms, established a new program promoting long-term investments in low-income areas, with the goal of stimulating development in these economically distressed communities.
This program enables taxpayers to postpone and potentially decrease the tax on federal capital gains by re-investing the capital gains in “Qualified Opportunity Funds” that invest 90% of their assets in certain low-income communities designated as “Qualified Opportunity Zones.” In addition, gains on investments in these funds can be tax-free if the investment is held for more than 10 years.
Tarter Krinsky & Drogin has a multidisciplinary team consisting of lawyers from our Tax, Real Estate and Corporate practice groups to assist fund sponsors, developers, innovators and investors determine the right approach, implementation and realization of the full investment potential of the opportunity zones program into their business strategy while ensuring compliance with the program’s legal requirements.
We assist clients in structuring deals to maximize the tax benefits of investing in qualified zones, offering insights that optimize the full extent of the Opportunity Zones program, including:
|Ben-Ami, Andrew R. Partner and Chair of Tax Practice||Partner and Chair of Tax Practice||212.216.8025|
|Molinari, Guy Partner and Chair of Corporate and Securities Group||Partner and Chair of Corporate and Securities Group||212.216.1188|
|Weisner, William W. Partner and Chair of Real Estate Practice||Partner and Chair of Real Estate Practice||212.216.8095|
Investing in a Qualified Opportunity Fund (QOF) may be attractive to many taxpayers, but older investors may be concerned with the possibility that they may pass away while holding the QOF investment and what that will mean for their estates and heirs.
As we head into summer, we would like to share with you some of our most popular legal alerts from the first half of 2019. Our top-read alerts range from construction, labor and employment, tax, corporate and securities, immigration, cooperatives and condominiums, commercial leasing, real estate, litigation and intellectual property, reflecting the broad array of our full-service practice. We hope that our alerts have been valuable to you and your colleagues, and demonstrate our commitment to providing helpful information to you.
One of the positive developments resulting from the 2017 tax legislation has been offering taxpayers a limited-time opportunity to defer gain on the sale of assets, reduce the gain when finally recognized and even eliminate gain on certain new investments. This is all made possible under the 2017 Tax Act by investing in "Qualified Opportunity Zones," a new provision that allows taxpayers to free up capital gains and reinvest those gains in economically distressed census tracts.
The 2017 Tax Act is offering a limited-time opportunity for taxpayers to defer gain on the sale of assets, reduce the gain when finally recognized and even eliminate gain on certain new investments. This is all made possible under the 2017 Tax Act by investing in "Qualified Opportunity Zones," a new provision that allows taxpayers to free up capital gains and reinvest those gains in economically distressed communities. Learn more about the intricacies of these tax benefits.