Tax incentives have been a hot topic in the news lately – from providing breaks to some of the wealthiest businesses, to the tax exemption homeowners get for owning their home. Businesses and residents both with low-income and immense wealth take advantage of these federal and local benefits, meaning they affect multiple levels of our livelihoods. Many times these incentives are geared towards creating opportunity for development in areas that have traditionally been disinvested. The latest of these is Opportunity Zones. With an estimated $6 Trillion in unrealized capital gains (assumed asset profit in existing investments that have not been sold), this benefit looks to leverage these unrealized gains by deferring federal tax paid on them once the asset has been sold.
Confused much? Check out the brief we made to help us understand Opportunity Zones and how they can impact community development.
If you have any questions, comments, concerns, or additions, please do not hesitate to let us know.