To make a profit, essentially a taxpayer must sell an asset and generate a capital gain. The capital gain is invested into a QOZ fund. The goal is to delay and reduce taxes owed to the government. If the property is held for 10 years, that taxpayer can pay zero capital gains tax on the new investment in the fund.

Investors holding real estate in a QOZ  for 10 years essentially pay no capital gains tax. This could lead to a 30-40% increase in your annualized return. This isn’t a small tax benefit, it’s very substantial.

The Opportunity Zones initiative is not a top-down government program from Washington but an incentive to spur private and public investment in America’s underserved communities. President Donald Trump Signed the Tax Cuts and Jobs Act into law on Dec. 22, 2017.