Zone Fund I, LLC
Created Under the Tax Cuts and Jobs Act of 2017
Three primary benefits of investing in opportunity zone funds
Tax payable on capital gains invested in a qualified opportunity fund are deferred until the earlier of the sale of the investment or December 31, 2026.
STEP-UP IN BASIS:
The basis of an investment in a qualified opportunity fund is increased by 10% if the investment is held by the taxpayer for at least 5 years and by an additional 5% if held for at least 7 years, thereby excluding up to 15% of the original gain from taxation.
If the investment is held for at least 10 years, it results in a permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in a qualified opportunity fund. This exclusion only applies to gains accrued with respect to an investment in a qualified opportunity fund.