What is an Opportunity Zone?

Simeon Cathey

In early 2018 the governors of each state selected the Opportunity Zones for their states from among the state’s economically disadvantaged census tracts.  You can see all the Opportunity Zones in the United States on this map.

What is an Opportunity Fund?

Simeon Cathey

An Opportunity Fund receives money from investors, and in turn invests the money in Opportunity Zone Projects.  An Opportunity Fund might have one or many investors. And an Opportunity Fund might invest in one or many Projects.

What is this Opportunity Fund stuff all about?

Simeon Cathey

A huge Federal Tax Law passed in December 2017 had buried within it a provision which sets up a new type of transaction – the Opportunity Fund Rollover.  In the Opportunity Fund Rollover transaction, a taxpayer with capital gains (e.g. after selling stock or real estate) invests the gain in an Opportunity Fund.  The Opportunity Fund in turn invests in …