The Federal Opportunity Zones incentive is a new investment tool established by US Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. Opportunity Zones provide a tax incentive for investors to re-invest their unrealized capital gains into dedicated Opportunity Funds. Any corporation or individual with capital gains can qualify.
The Poteau Mine and Portal are within the Opportunity Zone and qualify for the tax benefits. The program provides three tax benefits for investing unrealized capital gains in Opportunity Zones: incentive is a new investment tool established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. Opportunity Zones provide a tax incentive for investors to re-invest their unrealized capital gains into dedicated Opportunity Funds. Any corporation or individual with capital gains can qualify. The Poteau Mine and Portal are within the Opportunity Zone and qualify for the tax benefits. The program provides three tax benefits for investing unrealized capital gains in Opportunity Zones: |
Temporary DeferralA temporary deferral
of inclusion in taxable income for capital gains reinvested into an Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which the opportunity zone investment is disposed of or December 31, 2026. |
Step-Up In BasisA step-up in basis for capital gains reinvested in an Opportunity Fund. The basis is increased by 10% if the investment in the Opportunity Fund 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.
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Permanent ExclusionA permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in an Opportunity Fund if the investment is held for at least 10 years. This exclusion only applies to gains accrued after an investment in an Opportunity Fund.
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