take advantage of one bridge street offering
capital gains opportunity zone
The project is located in an Opportunity Zone, and as such investors may be able to utilize the tax incentives associates with developments in these locations. Opportunity Zones are a relatively new community development program created under the Tax Cuts and Jobs Act (Public Law NO. 115-97).
206 North First Avenue is located within an Opportunity Zone (OZ), which will provide capital gains tax relief to qualified investors involved in the development. The Federal OZ Program allows each state’s governor to nominate up to 25% of the qualifying low-income Census tracts as OZs. It was created under a provision of the Tax Cuts and Jobs Act, which was signed into law in December 2017, allowing investors to roll capital gains tax liabilities into new investments on a tax-deferred basis through Qualified Opportunity Funds. Taxpayers become eligible to receive significant tax benefits in three ways:
Allows a taxpayer 180 days to reinvest capital gains into a QOZ. Reinvesting capital gains allows taxpayers to defer capital gains tax until the “Recognition Date”, which is the earlier of the date the OZ property is disposed of or December 31, 2026.
At the time of investment in the Qualified Opportunity Fund, the deferred gain basis begins at 0. After five years, the basis increases to 10%.
If a taxpayer holds the investment in the Qualified Opportunity Fund for 10 years and meets the original use or substantial improvement qualification, then the taxpayer will not pay capital gains tax on the appreciation of the investment.