Tax Rules Released Regarding Opportunity Zones
✉️ Want to forward this article? Click here.
When DC nominated its 25 Opportunity Zones (OZs) in April, little was known about how this new system of investment would operate. Now, more light is being shed on how they will work.
Created as part of this year's massive tax reform bill, OZs are specific low-income census tracts where real estate development is incentivized via pooling of investor resources in Opportunity Funds (OFs), which temporarily shield those investments from taxation. The Treasury Department released guidance on Friday outlining how OZs and OFs will operate.
story continues below
story continues above
One of the main highlights of Friday's guidance is that when an asset (whether tangible property, stock or partnership interest) is sold, the resulting capital gains can be deposited into an Opportunity Fund and will not be taxed until 2026, or until the investment is sold. Individuals, businesses, corporations, estates, trusts and REITs will all be eligible to invest in OFs. After seven years, investments can be discounted up to 15 percent for taxation. Any investment held for ten years will be permanently exempt from taxation.
Additional details are expected to be announced before the end of the year, including rules on how OZ assets can be bought or sold; final guidance is expected next spring. In the meantime, many entities are already setting up OFs in order to be well-positioned to take advantage of this initiative as quickly as possible.
See other articles related to: capital gains tax, opportunity funds, opportunity zones, real estate investing, taxis, treasury
This article originally published at https://dc.urbanturf.com/articles/blog/preliminary-rules-released-regarding-opportunity-zones/14597.
Most Popular... This Week • Last 30 Days • Ever

Cash-out refinancing is a popular financial strategy that allows homeowners to conver... read »

Plans to redevelop a strip mall along the thoroughfare are back in the works after a ... read »

A new report continues to find that there is an uptick in new listings coming online ... read »

Today, UrbanTurf checks in on the status of the development pipeline over in Congress... read »

The new 230-room citizenM hotel is expected to open at the beginning of 2026.... read »
- How Does Cash-Out Refinancing Work?
- 262-Unit Development With 'Main Street' Retail Pitched For Columbia Pike
- Three Months In, How Is DOGE Affecting The DC-Area Housing Market?
- St. E's And More: A Look At The Congress Heights Residential Pipeline
- Georgetown Hotel Along Water Street Set To Deliver Next Year
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro