Carl Jamison and Bobby Bragg are joined by guest Alex Flachsbart of OPAL or Opportunity Alabama.

Opportunity Zones” were created in the Tax Cuts and Jobs Act of 2017.  Tax nerds call that the TCJA. It’s hard to believe that we are now almost five full years from their creation. These zones encourage private sector investment in low-income community businesses and real estate which are inside defined census tract lines throughout the United States.

This tax code allows any taxpayer to defer capital gains until the earlier of the date on which the opportunity zone investment is sold or December 31, 2026 on the sale of any property to unrelated taxpayers by investing the gain in a qualified Opportunity Fund. That fund then must invest at least 90% of its assets, directly or indirectly, in businesses located in certain low-income communities designated as Opportunity Zones. If the OZ investment is held for 10 or more years, there will be no tax on the appreciation of the OZ investment.

There have been plenty of rule updates and guidance since 2017, so please check out the JMF blog for specific guidance and links to other resources: