General Rules
Qualifications for Investing in the Opportunity Zone Fund
- To invest in the Opportunity Zone Fund, your capital Gains investment should include any gains made from recognized taxable exchanges including proceeds from the sale of bonds or stock, property, or sale of an interest in a business or property partnership.
- You can invest short-term or long-term Capital gains in an Opportunity Zone Fund.
- Investments in the form of gains are normally taxed as ordinary income and gains from derivative contracts do not qualify as investments for an Opportunity Zone Fund.
- You will be required to invest your Capital Gains into the Fund within 180 days after getting the Capital Gains.
- As an investor, you are fully responsible for ensuring that your Capital Gains are eligible and qualify for the Opportunity Fund based on your unique circumstances.
- Taxpayers have the option to defer Capital Gains achieved via an Opportunity Fund whether as individuals, C corporations including RICs and REITs, trusts, and partnerships.
- Opportunity Fund tax benefits are only available to investors who have qualifying Capital Gains.
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Qualified Opportunity Zone Fund
- An investment becomes a Qualified Opportunity Zone Fund if it is from a corporation or a partnership created for the purpose of investing in the Fund.
- To become a Qualified Opportunity Zone Fund, 90% of the invested assets must be invested in the Opportunity Zone property.
- The funds or Capital Gains must be in the form of equity and not debt.
- The funds invested either directly or indirectly must have improved significantly within 30 months.
- The Opportunity Zones Fund seeks to engage in the development of existing property by pumping in new money into the property.