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The Tax Cuts and Jobs Act of 2017 added Internal Revenue Code Section 1400Z, which created a new program to encourage investment and job creation in economically distressed communities designated as qualified opportunity zones (QOZs). At its core, this program provides preferential tax treatment and benefits for investors who reinvest capital gains into QOZs.
Although much has already been written about the tax benefits of QOZs, there’s been less discussion of whether these investments are right for individual investors. As we’ll identify, there are various issues a potential individual investor should consider before proceeding with an investment. Evaluating whether a QOZ investment is an appropriate investment is no different from eva...
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