FAQs

How were Opportunity Zones created?

Opportunity Zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017.

Have Opportunity Zones been around a long time?

No, they are new. The first set of Opportunity Zones, covering parts of 18 states, were designated on April 9, 2018. Opportunity Zones have now been designated covering parts of all 50 states, the District of Columbia and five U.S. territories.

How do Opportunity Zones spur economic development?

Opportunity Zones are designed to spur economic development by providing tax benefits to investors. First, investors can defer tax on any prior gains invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on which the investment in a QOF is sold or exchanged, or December 31, 2026. If the QOF investment is held for longer than 5 years, there is a 10% exclusion of the deferred gain. If held for more than 7 years, the 10% becomes 15%. Second, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor is eligible for an increase in basis of the QOF investment equal to its fair market value on the date that the QOF investment is sold or exchanged.

What is a Qualified Opportunity Fund?

A Qualified Opportunity Fund is an investment vehicle that is set up as either a partnership or corporation for investing in eligible property that is located in a Qualified Opportunity Zone.

Do I need to live in an Opportunity Zone to take advantage of the tax benefits?

No. You can get the tax benefits, even if you don’t live, work or have a business in an Opportunity Zone. All you need to do is invest a recognized gain in a Qualified Opportunity Fund and elect to defer the tax on that gain.

I am interested in knowing where the Opportunity Zones are located. Is there a list of Opportunity Zones available?

Contact us at (720)588-2000 for a full list of available Opportunity Zones

 

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Investment advice is offered through APO Financial Services, LLC (“APO”), 10155 Westmoor Drive, Suite 175 Westminster, Colorado 80021-2627, an investment adviser registered with the state of Colorado. Registration with the state of Colorado should not be construed to imply that the state of Colorado has approved or endorsed qualifications or the services APO offers, or that or its personnel possess a particular level of skill, expertise or training. Investment advisor representatives of APO may only conduct business with residents of the states and jurisdictions in which they are properly registered or exempt from registration requirements. It is important to read our disclosures available at https://apofinancial.com. Additional information pertaining to APO’s registration status, its business operations, services and fees and its current written disclosure statement is available on the SEC’s Investment Adviser public website at https://www.adviserinfo.sec.gov .

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