What Are Qualified Opportunity Zones? Important Details for Investors

Investing in blighted or up-and-coming “opportunity zones” offers some significant tax-deferral opportunities, and if you hold your investment for 10 years, your gains could be 100% tax free.

A window in an old log house looks out onto a beautiful mountain view.
(Image credit: Getty Images)

Opportunity zones are identified by the IRS as communities in need of economic development and revitalization. Through tax incentives and investments in these underdeveloped areas, opportunity zones became part of the Tax Cuts and Jobs Act of 2017 and can boast of being one of the few pieces of legislation that actually received bipartisan support. The legislation helps to promote community development, an increased tax base, and job creation in over 8,000 designated areas of the United States.

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Daniel Goodwin
Chief Investment Strategist, Provident Wealth Advisors

Daniel Goodwin is a Kiplinger's contributor on various financial planning topics and has also been featured in U.S. News and World Report, FOX 26 News, Business Management Daily and BankRate Inc. He is the author of the book Live Smart - Retire Rich and is the Masterclass Instructor of a 1031 DST Masterclass at www.Provident1031.com. Daniel regularly gives back to his community by serving as a mentor at the Sam Houston State University College of Business. He is the Chief Investment Strategist at Provident Wealth Advisors, a Registered Investment Advisory firm in The Woodlands, Texas. Daniel's professional licenses include Series 65, 6, 63 and 22. Daniel’s gift is making the complex simple and encouraging families to take actionable steps today to pursue their financial goals of tomorrow.