A 10-Step Roadmap to Selecting an Opportunity Zone Fund
July 24, 2019 | Paul Platkin | Wealthmanagement.com
Qualified opportunity zone funds offer a novel, tax-advantaged opportunity for high-net-worth investors. However, because they’re so new, selecting QOZFs that have sound fundamentals and investor safeguards is even more important.
Designed to revitalize economically challenged, low-income communities, QOZs use private investments rather than taxpayer dollars.
The upside for individual investors is clear; they can defer and reduce capital gains taxes on a wide variety of legacy assets used as a source of funding and exclude capital gains taxes altogether on new QOZ investments. The challenge for investors, however, lies in selecting an appropriate QOZF in which underlying assets will not only generate satisfactory returns but also meet regulatory requirements necessary to accrue tax benefits.
