On December 22, 2017, the Tax Cuts and Jobs Act (TCJA) was signed into law and introduced numerous impactful changes and additions to current tax law. Effective January 1, 2018, the TCJA created the Opportunity Zone Program.
The purpose of the Opportunity Zone Program is to encourage investment in low-income communities by giving investors the ability to defer capital gains tax, step up their tax basis for capital gains reinvested in an Opportunity Zone investments, and achieve permanent exclusion from taxable income of capital gains from the sale or exchange of Opportunity Zone investments held for at least 10 years. To be eligible to utilize the Opportunity Zone Program, a taxpayer must have a taxable gain event in which it seeks to reinvest the proceeds. The goal of the program is to unlock capital by encouraging taxpayers to sell property and invest the gain proceeds in Opportunity Zones.
Maynard Coper Opportunity Zone Team
A multidisciplinary team of Maynard Cooper attorneys is focused on the Opportunity Zone Program. Our team works together seamlessly to assist fund managers, real estate investment companies, private equity investors, real estate developers, business owners, economic developers, municipal leaders, and others with all aspects of Opportunity Zone projects, including fund formation, risk assessment, and compliance with regulatory requirements. Front-end planning is critical in taking full advantage of the significant benefits offered by the Opportunity Zone Program, and the Maynard Cooper team has the expertise to advise clients throughout the investment process. Our experience in this area includes the following:
- Advising on recent Opportunity Zone rulemaking
- Reviewing and assessing Opportunity Zone diligence
- Structuring and forming Opportunity Zone funds
- Drafting offering memoranda and other related fund documents
- Structuring and documenting investments in Opportunity Zone projects and businesses
Maynard Cooper Opportunity Zone Blog
For additional information on the Opportunity Zone Program, click here for the Maynard Cooper Opportunity Zone Blog.