Tax Advantages
Tax Advantages for Investors Investing in Opportunity Funds
Opportunity Fund investors get three important tax advantages namely:
- Capital Gains Deferral – Capital Gains invested in the Fund do not necessarily have to be classified as sold or exchanged investment until December 31, 2026.
- Capital Gains Reduction – When an investor maintains investments in the Fund for a period of 7 years, the Original Capital Gains tax is reduced by 15%. The reduction is the same as getting a 155 step-up on the investor’s original investment.
- Zero Capital Gains Tax on Fund Profits – When an investor maintains his or her investment in the Fund for a period of 10 years or more, the investment in the Opportunity Fund is not subjected to extra federal income taxes.