Using “Opportunity Zones” to Defer Capital Gains

“Opportunity Zones” provide a unique vehicle to defer realized capital gains on the sale of stock or other investments. The Opportunity Zone structure is very simple to implement and report and allows for deferral of realized capital gains invested through an Opportunity Zone for up to seven years, a two tier step up in basis on invested gains to a maximum of 15% in bonus tax basis in the gains, and for Opportunity Fund investments held for ten years,  a permanent exclusion from capital gains for all gains generated by the Opportunity Zone investment.

On October 14, 2019, Todd C. Rhea, Esq. of Clark & Bradshaw, PC and Brian Shull, Economic Development Director for the City of Harrisonburg, made a presentation on Harrisonburg Opportunity Zones to the Harrisonburg Rotary Club.

A copy of their presentation is available here: Harrisonburg Opportunity Zones, October 2019

The following sites contain additional information that may be of interest: www.opportunityva.org for a listing of Opportunity Zones across Virginia and potential investments listed by sponsors in Virginia. And for an interesting “ranking” of Opportunity Zones across the U.S., the site www.developadvisors.com/opportunity-zones-index/ is very informative.

For additional information on Opportunity Zones and potential investments, please do not hesitate to contact us. Clark & Bradshaw has over 70 years of experience in commercial development in the central Shenandoah Valley. Please do not hesitate to contact us if you have any questions about Opportunity Zone investment strategies or projects as an investor or sponsor.