{"id":121,"date":"2023-05-30T19:47:51","date_gmt":"2023-05-30T19:47:51","guid":{"rendered":"https:\/\/capitalsquare1.wpengine.com\/?page_id=121"},"modified":"2025-09-16T15:38:35","modified_gmt":"2025-09-16T15:38:35","slug":"opportunity-zone-funds","status":"publish","type":"page","link":"https:\/\/capitalsq.com\/real-estate-investment\/opportunity-zone-funds\/","title":{"rendered":"Qualified Opportunity Zone Funds"},"content":{"rendered":"
Qualified Opportunity Zone Funds<\/span><\/div>\n\n

Providing significant tax benefits to investors while creating positive impact in local communities<\/span><\/h1>\n\n

Multifamily rental demand is skyrocketing across the United States, and opportunity zones (OZs) are answering that demand with robust transformations.<\/p><\/div>\n\n

OZs connect private capital with economic growth<\/span><\/h2>\n\n

Opportunity zones were created as part of the Tax Cuts and Jobs Act of 2017 to stimulate long-term private investments in low-income urban and rural communities nationwide.<\/p>\n\n

By providing tax benefits to investors, opportunity zone fund investments promote economic growth in distressed areas. Investors benefit from tax-deferral and exclusion. <\/p>\n\n

What changed with OZ 2.0?<\/span><\/h6>\n\n

Opportunity Zones 2.0 legislation was signed into law on July 4, 2025, making opportunity zones a permanent fixture of the U.S. Tax Code. Learn more about what the changes mean for investors from a July 17, 2025 webinar from the Capital Square team.<\/a><\/p><\/div>

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How are opportunity zones determined?<\/span><\/h2>\n\n\n\n

The governor of each state and five U.S. territories designated up to 25% of eligible census tracts as opportunity zones, resulting in nearly 9,000 active opportunity zones across the country.<\/p>\n\n

Starting in 2026, governors will designate new opportunity zones from qualifying tracts on a ten-year cycle.<\/p><\/div><\/div>\n\n

Reinvesting capital gains for partial or complete elimination of tax<\/span><\/h2>\n\n

Capital gains from the sale of any asset can be reinvested in a qualified opportunity zone fund to achieve tax deferral and exclusion. Capital gains may have resulted from the sale of stocks, bonds, mutual funds, real estate, a business, art, cryptocurrency or other assets.<\/p>\n\n

Defer or fully exclude (forgive) capital gains taxes<\/span><\/h6>\n\n

Defer capital gains taxes<\/strong> from initial sale of stocks, bonds, real estate, businesses and other assets by investing in a qualified opportunity zone fund.<\/p>\n\n

Exclude (forgive) capital gains taxes<\/strong> from fund appreciation if held for at least 10 years.<\/p><\/div>

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How to invest in opportunity zones<\/span><\/h2>\n\n