{"id":159692,"date":"2021-12-20T15:13:48","date_gmt":"2021-12-20T20:13:48","guid":{"rendered":"https:\/\/qa.bluevaultpartners.com\/?post_type=news&p=159692"},"modified":"2021-12-20T15:13:48","modified_gmt":"2021-12-20T20:13:48","slug":"opportunity-zones-face-bleak-end-of-year-deadline","status":"publish","type":"post","link":"https:\/\/qa.bluevaultpartners.com\/opportunity-zones-face-bleak-end-of-year-deadline\/","title":{"rendered":"Opportunity Zones Face Bleak End of Year Deadline"},"content":{"rendered":"
December 17, 2021 | Erik Sherman | GlobeSt.com<\/p>\n
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There\u2019s a bleak deadline quickly approaching for the tax conscious. Qualified opportunity zones have been a tactical maneuver to defer capital gains for investments and see some step-up in basis to reduce taxes. But that ends come December 31, 2021. Starting January first, those tax advantages disappear. That seems to be nudging some last-minute investing.<\/p>\n
QOZs were part of the 2017 Tax Cuts and Jobs law, which times out on December 31, 2026. Before then, taking capital gains and investing them into a QOZ has offered two tax benefits. One is tax deferral through 2026, unless there\u2019s a disposition of the investment first. That allows the investor to make additional money from the tax payment during the deferral.<\/p>\n
The other part of the program has been tax reduction. There is a basis step-up in tax treatment depending on the length of time the investment was held. If for five years, that would be 10%. Holding for seven years would add another 5% step-up, but that additional timing is no longer available as there isn\u2019t enough time between 2021 and 2026.<\/p>\n