OPPORTUNITY ZONE INVESTMENT

Opportunity Zones provide investors tax benefits: deferral, step-up in basis, and tax-free status after 10 years. Legacy Heights is located in one of Wisconsin's few Opportunity Zones.

Tax Deferral Through 2026

The first benefit is the tax deferral of capital gains. These capital gains will need to be reinvested into opportunity funds or opportunity zones within 180 days to claim the tax deferral. The tax deferral on the reinvested capital gains can be used until the end of 2026 or until the asset is sold.

After 10 Years, No Tax on Appreciation

The goal of opportunity zones is to encourage long-term investing. For investors remaining in the opportunity fund for 10 years, there is potentially no tax on appreciation. For example, if a person invests $2 million into a qualified opportunity fund, waits 10 years, and sells the investment for $4 million, the $2 million in appreciation is not taxable.

*Depending on future tax legislation, capital gains rates may fluctuate. Taxpayers should seek the advice of their professional legal and tax counselors when considering an investment in an opportunity zone.