Qualified Opportunity Zones to Defer Capital Gains from the Sale of a Business


A client recently sold his business and was looking for options to address a large capital gain as a result of the sale. We presented a number of solutions with support from his other advisors. One of the options we are implementing includes an investment in a Qualified Opportunity Zone (QOZ).

Opportunity Zones were born out of the Tax Cuts and Jobs Act of 2017. When structured properly, investing in a QOZ allows you to defer capital gains through 2026. In addition, if the holding period within the QOZ is 10+ years, any gain from the underlying investment is exempt from further taxation.

For more details on Qualified Opportunity Zones, please read the attached alert from the Advanced Planning Group at UBS.

Updated: Apr 26, 2022

About the author
David Fasi, CFP®, CEPA® of UBS is a member of XPX Hartford

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