Opportunity Zones

Opportunity Zones 1500 1000 BERNSTEIN FINANCIAL SERVICES 2019

A new set of tax laws were recently passed expanding the tax rules commonly known as 1031 exchanges.  In the past, only investment real property qualified for the 1031 tax laws.  The new laws expanded the qualified property for exchanges to allow property such as stock gains to be deferred into real property construction projects in “Opportunity Zones” throughout the United States.

The gains must flow through a Qualified opportunity Zone Fund and some of the 1031 exchange conditions also still apply to the transaction.

Rather than just a gain deferral from the original property sale, future gains on the new target property can be excluded completely.  The target property must be held for a number of years for the exclusion to be enjoyed.

The rules to utilize Opportunity Zones are complicated, and the tax laws will likely go through a series of clarifications.  Let Bernstein Financial assist you during this  process.