Welcome to Flemington — the only Opportunity Zone in Hunterdon County! This is GREAT news for investors who want to defer federal capital gains taxes and take advantage of tremendous opportunities in an upwardly mobile real estate development environment. Here’s a little bit of background on the program.
The Opportunity Zones program, enacted as part of the 2017 federal Tax Cuts and Jobs Act, provides opportunities for private investors to support investments in distressed communities.
What’s in it for investors?
A lot! You can defer paying federal taxes on capital gains reinvested in Qualified Opportunity Funds that invest in low-income communities. Reinvested capital gains are deferred from taxation until exit from a Qualified Opportunity Fund or December 31, 2026, whichever comes first. Gains from Qualified Opportunity Fund investments held for the long term are taxed at reduced rates, with the rate reductions increasing at the 5, 7, and 10 year marks. Any gains from Qualified Opportunity Fund investments held for at least 10 years will be permanently excluded from the capital gains tax.