Qualified Opportunity Zone Funds: A Private Investment With Tax Benefits

There has been much discussion regarding the Qualified Opportunity Zone program established via the Tax Cuts and Jobs Act in 2017 because of potential tax advantages. This program aims to incent long-term private sector investment in low-income communities nationwide while allowing investors to potentially defer and partially reduce capital gains tax by investing capital gain amounts (or a portion) in Qualified Opportunity Zone (“QOZ”) through a Qualified Opportunity Zone Fund. When considering a QOZ Fund, as with any investment, it is important to ensure that the investment is sound, prudent and addresses one’s financial objectives.