Opportunity Zones can incentivize capital investments in urban and rural communities. This investment program was enacted as part of the 2017 US Tax Cuts and Jobs Act.
Benton Harbor and Benton Charter Township contain three (3) census tracts, with unlimited potential, that have been designated by the U.S. Treasury and Internal Revenue Service in the initial round of Opportunity Zone designations.
The Opportunity Zones program provides three types of tax incentive for investors to re-invest capital gains into Opportunity Funds. Each of the incentives are connected to the longevity of an investor’s stake in a qualified Opportunity Fund with the most benefit provided to those who hold their investment for 10 years or more. The advantages of an investment in an Opportunity Zone can be tremendous, but to get the full benefit the investments should be made by the end of 2019.
Qualified Opportunity Zones retain this designation for 10 years. Investors can defer tax on any prior gains until no later than December 31, 2026, so long as the gain is reinvested in a Qualified Opportunity Fund. If the investor holds the investment in the Opportunity Fund for at least 10 years, the investor would be eligible for an increase in its basis equal to the fair market value of the investment on the date that it is sold. The biggest benefit of the program allows you to hold your investment for 10 years and delay sale as long as 2047, and pay no tax on the appreciated gain.
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