How do you defer capital gains taxes, and help a community in need at the same time?
The Opportunity Zone program was made permanent in 2025.
What’s an Opportunity Zone?
An Opportunity Zone is a special, government-designated area—usually a low-income or economically distressed community—where investors can receive tax incentives for putting their money to work.
Here’s how it works:
Sell an asset (real estate, stocks, a business, etc.) and reinvest your capital gains into an Opportunity Zone through a Qualified Opportunity Fund.
-The tax on the reinvested gain is deferred. Gains invested before 2027 are generally deferred until December 31, 2026; under the 2025 law, gains invested after that are generally deferred for five years. Confirm your dates with your CPA.
-Hold the Opportunity Zone investment for 10+ years, and you could pay no capital gains tax at all on the new investment’s growth.
(generally, you have 180 days after a sale to reinvest the gain)
Opportunity Zone funds are illiquid, long-term investments that can lose money, and the tax benefits depend on meeting strict rules. They aren't right for everyone.
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About the author
Founder of Jones Fiduciary Wealth Management. He spent nearly two decades on the legacy side of the industry before building a fiduciary advisory firm where the tax strategy comes first and the portfolio follows. Author of UnBrainwashed Investing.
