Novogradac & Company, a national certified public accounting and consulting firm, has released Client Alerts examining the tax impact of several provisions of H.R 1, the Tax Cuts and Jobs Act. The first alert (goo.gl/uy9mRr') examines Opportunity Zones—a newly created community development tool that provides tax incentives to investors funding businesses in underserved communities. This provision of H.R 1 allows investors to defer paying taxes on gains for up to 9 years if said gains are invested in Qualified Opportunity funds that then invest in economically distressed communities. Additionally, long-term investment is incentivized by allowing a modest step-up in basis for investments held beyond 5 and 7 years. Taxpayers holding Opportunity Fund investments for at least 10 years gain exemption from any additional gains beyond that which were previously deferred.
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