How To Invest
You realized capital gains recently (or may in the future), how can an Opportunity Zone benefit you?
To benefit from an Opportunity Zone, you must reinvest eligible capital gains in a Qualified Opportunity Fund (QOF).
You can either:
- Invest in an existing QOF; or
- Create a new QOF.
A QOF is a corporation or a partnership organized for the purpose of investing in Opportunity Zones.
To establish itself as a QOF, an eligible taxpayer entity self-certifies on IRS Form 8996, which the entity files with its income tax return. A QOF does not need pre-approval from the IRS, but it must have met the relevant requirements or pay a penalty to the IRS.
Subject to detailed tax regulations, a QOF can make eligible investments in new businesses, existing businesses, real property, or personal property.
Opportunity Arkansas can help you connect with existing QOFs or provide guidance to create your own Fund. Contact us for more information.
