Investment in an Opportunity Zone

For the calculation of gain on investment in an Opportunity Zone, the long term capital gain on the new investment can be eliminated if it is held for a minimum of 10-years. Therefore, to analyze the difference in return on an investment in an Opportunity Zone vs. non-Opportunity Zone, two reports can be run. Both reports should be run on the 10-year after-tax as this is required holding period to achieve the benefit.

 

1) Non-Opportunity Zone:  Default settings include the 20% Tax on Gain from Appreciation, 3.8% medicare/Net Investment Income Tax, and 25% Tax on Recaptured Depreciation 

 

2) Opportunity Zone:  Change Default Settings to 0% Tax on Gain from Appreciation, 0% medicare, and 0% Tax on Recaptured Depreciation. 

 

 

The Opportunity Zone investment can also defer gain from prior sale. It should be noted TheAnalyst PRO analyzes the current (new) investment and does not calculate the deferred gain from any prior sale.