LIQUID Investing in Opportunity Zones can provide investors with significant tax benefits and the potential for long-term economic growth in underserved communities. However, understanding the rules and requirements of the program can be challenging. This article aims to simplify the process by highlighting the 10 most important numbers to know about investing in Opportunity Zones.
The number of Opportunity Zones designated across the United States, covering more than 25 million people and over 11 million families. This number represents the potential reach of the program and its ability to make a positive impact in communities across the country.
The number of years that an investment must be held in a Qualified Opportunity Fund (QOF) in order to receive the full benefits of the program. This number is important because it sets the minimum holding period for an investment in a QOF and is a key factor in determining the amount of capital gains tax that will be deferred or excluded.
The year that the capital gains tax deferral period ends. This number is important because it sets the deadline for when investors must pay the deferred capital gains tax.
The estimated amount of capital gains in the United States. This number is significant because it represents the potential size of the market for Opportunity Zone investments and the potential tax savings that investors could receive through investment in these areas.
The estimated amount of investment that has been made in Opportunity Zones as of September 2020. This number is important because it represents the early success of the program and shows that investors are taking advantage of the benefits offered by the Opportunity Zone program.
The maximum reduction in capital gains tax that can be achieved through investment in Opportunity Zones. This number is significant because it represents the potential tax savings that investors can receive through the program.
The maximum investment that an individual can make in a Qualified Opportunity Fund. This number is important because it sets the limit for the size of an investment in a QOF, and helps to ensure that the benefits of the program are spread widely across different investors.
The maximum amount of capital gains that can be deferred through investment in Opportunity Zones. This number is important because it sets a limit on the amount of capital gains that can be deferred, helping to ensure that the benefits of the program are spread widely across different investors.
The percentage of total capital gains that must be invested in a Qualified Opportunity Fund in order to receive the full benefits of the program. This number is significant because it sets the minimum investment requirement for the program and helps to ensure that investors are making a meaningful investment in Opportunity Zones.
The estimated number of new jobs that could be created through investment in Opportunity Zones. This number is important because it represents the potential impact that the program could have on employment and economic growth in underserved communities across the United States.
