Full Definition
Opportunity Zones are ~8,700 federally-designated census tracts. Investors can defer capital gains from ANY sale (not just real estate) by investing the gain in a Qualified Opportunity Fund (QOF) within 180 days. After 10-year hold, the appreciation on the QOF investment is 100% tax-free.
Related Terms
1031 Exchange (Like-Kind Exchange)
IRS-approved strategy allowing investors to defer capital gains taxes by reinvesting proceeds from sold investment property into like-kind property.
Capital Gains Tax
Federal tax on the profit from selling an investment asset. Long-term rate is 0-20% plus 3.8% NIIT for most real estate investors.