Qualified Opportunity Zone Program
There are many worthwhile benefits to the Opportunity Zone program. It is an economic development initiative geared toward boosting opportunities within lower-income neighborhoods. Furthermore, it does offer some nice tax breaks, especially if you don’t want to pay taxes on your capital gains.
But the QOZ program is, above all, an investment, and as with any investment, there are risks you must consider. Adding to the complexity is that the program is still so new, and many missteps could occur. Those missteps could, in turn, end up costing you tax breaks.
As such, your goal is to educate yourself as thoroughly as possible about the Qualified Opportunity Fund you are considering for your capital gains investment. With help from extensive QOF due diligence, you’ll be better prepared and able to make the right investment decision, one that makes the most sense for you.