Investments in Qualified Opportunity Zones (QOZ’s) are the current hot topic that everyone is talking about. They allow for the realization of a capital gain while deferring the payment of taxes on the gain in exchange for making a new investment in a qualified fund. The gain eligible for deferral can be from any source; the sale of stocks, a business, appreciated real estate, etc.
Is it as simple as it sounds? What are the real economics and requirements? What are the fees, costs, tax savings and time value of money? How does investing in a QOZ compare with the other tax advantaged alternatives?
What are the tax benefits of this relatively new regulation?
What is required to qualify?
What are the likely costs and fees?
Are there any downsides?