lawyer in chicago who wrote the opportunity zone legislation

What is the Opportunity Zone program?

May 11, 2018 · The State of Illinois is participating in the Opportunity Zone program, offered through the Tax Cuts and Job Act signed into law on December 22, 2017.. This new federal program encourages private investment in low-income communities by offering tax incentives for qualified investors, and state governments are responsible for making Opportunity Zone tract …

Are there Opportunity Zones in Illinois?

Businesses can invest realized capital gains in Opportunity Zones via Qualified Opportunity Funds. A few of the benefits include: Deferral – Defer the invested capital gain until December 31, 2026; Tax-Free Appreciation – 10% Basis Step Up if invested for 5 Years; An additional 5% Basis Step Up if invested for 7 Years; plus,

What is the opportunity zone Extension Act of 2021?

Opportunity Zones were created under the 2017 Tax Cuts and Jobs Act, signed into law by President Donald Trump. The first Opportunity Zones were designated in April 2018. [4] There are more than 8,768 zones in the 50 states, and five U.S. possessions, including American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and the Virgin Islands.

What is a Qualified Opportunity Zone property?

Seyfarth has assembled a multidisciplinary team of leading real estate, tax, securities, fund formation, and tax-exempt attorneys to help investors, developers, fund managers and corporations navigate Opportunity Zone (OZ) fund legislation. We have been closely monitoring the legislation since December 2017, while working with clients to navigate the complicated …

When were Opportunity Zones created?

States may designate up to 25% of low-income census tracts as Opportunity Zones. Opportunity Zones were created under the 2017 Tax Cuts and Jobs Act, signed into law by President Donald Trump . The first Opportunity Zones were designated in April 2018.

What is Opportunity Zone?

An Opportunity Zone is a designation and investment program created by the Tax Cuts and Jobs Act of 2017 allowing for certain investments in lower income areas to have tax advantages.

How much of your assets must be invested in an Opportunity Zone?

Requirements. To qualify, the Opportunity Fund must invest more than 90% of its assets in a Qualified Opportunity Zone Property located in an Opportunity Zone.

When do you have to invest in Opportunity Fund?

An investor must invest in an Opportunity Fund by the end of 2019 to meet the seven-year holding period and be able to exclude 15% of the deferred capital gain. An investor may exclude 10% of the deferred capital gain by investing in an Opportunity Fund by the end of 2021 to meet the five-year holding period.

Can you defer capital gains tax on a 1031 exchange?

Opportunity Zones now allow an investor to defer capital gains taxes by trading one asset with another asset in a different asset class.

Video

Now that Opportunity Zones have been around for two years and numerous deals have been completed as part of the program, this webinar series discusses the impact on investments and real estate, lessons learned, and strategies and solutions going forward.

Who Should Consider These Investment Opportunities?

Private equity and venture capital funds/sponsors who invest in real estate or low-income communities

For More Information

For more information, please contact Brad A. Molotsky, Arthur J. Momjian or any of the practice members referenced in the Attorney Listing.