Qualified Opportunity Zone

As of June 2018, Port 15 Utah is an Opportunity Zone

The Opportunity Zone program was created by the federal government to assist in revitalizing economically distressed communities by utilizing private investments instead of taxpayer funding. Taxpayers who invest in Opportunity Zones are eligible to benefit from capital gains tax incentives available exclusively through this program.

Opportunity Zones were created using census tracts generally composed of lower-income and economically distressed areas that meet the Opportunity Zone program’s criteria. This criteria was established in the 2017’s Tax Cuts and Jobs Act. For more information on about the Act click here.

EIG.ORG has more information about Opportunity Zones. On their webpage, they gave the following information,

“WHAT ARE THE INCENTIVES THAT ENCOURAGE LONG-TERM INVESTMENT IN LOW INCOME COMMUNITIES? Opportunity Zones offer investors the following incentives for putting their capital to work in low-income communities:

  • A temporary tax deferral for capital gains reinvested in an Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which the opportunity zone investment is sold or December 31, 2026.

  • A step-up in basis for capital gains reinvested in an Opportunity Fund. The basis of the original investment is increased by 10% if the investment in the qualified opportunity zone fund is held by the taxpayer for at least 5 years, and by an additional 5% if held for at least 7 years, excluding up to 15% of the original gain from taxation.

  • A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in a qualified opportunity zone fund, if the investment is held for at least 10 years. (Note: this exclusion applies to the gains accrued from an investment in an Opportunity Fund, not the original gains).”

Port 15 Utah qualifies for Opportunity Zone Investments.  Contact us at (435) 865-3870 for further information.