We’ve all heard the saying, “Nothing is certain except death and taxes.” But savvy business owners and investors are challenging that notion with the clever use of Opportunity Zone (OZ) strategies, making taxes a little less inevitable.<\/p>\n
In 2018, a transformative shift in the federal tax code opened doors for taxpayers. Now, those selling appreciated assets can choose between paying immediate income tax or deferring that payment by channeling taxable income into OZ business ventures. The benefits? A deferral on capital gains tax until 2027, and if you hold onto that OZ investment for a decade, a 100% tax-free exit. What’s more, invesmtents made into Ohio OZs can apply for a\u00a010% state income tax credit<\/a>\u00a0within just four months post-investment.<\/p>\n Did you know? The aim of opportunity zones was to fuel private investment in regions still grappling with the aftermath of the Great Recession. Fast forward to now, and we’re seeing a booming\u00a0$34 billion economy<\/a>\u00a0sprouting from private OZ business ventures.<\/p>\n To summarize the basic timing rules and tax mechanics, consider the following hypothetical:<\/p>\n In this simplified example, Audrey’s decision to organize her investment in compliance with the federal and state OZ rules potentially yields millions:<\/p>\n Opportunity Zones are not a one-size-fits-all strategy. They demand personalized planning. Their flexible appeal extends to both real estate and business ventures, setting them apart from typical 1031 exchanges. Before diving in, it is critical to consult professionals to tailor the best OZ strategy for you.<\/p>\n Interested in pinpointing opportunity zones? Dive into the interactive map on the Treasury Department\u2019s website at\u00a0www.cdfifund.gov\/Pages\/Opportunity-Zones.aspx<\/a>.<\/p>\n\tYour Opportunity Zone Blueprint in Three Steps<\/strong>:<\/h2>\n
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A Scenario<\/strong>:<\/h4>\n
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The Bigger Picture<\/strong>:<\/h2>\n