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Evaluating the Benefits and Risks of Qualified Opportunity ZonesEvaluating the Benefits and Risks of Qualified Opportunity Zones

Understanding the investment component and potential estate-planning considerations is critical.

12 Min Read
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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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About the Authors

Stacey Delich-Gould

Senior Vice President and Trust & Estate Specialist, Capital Group Private Client Services

Stacey Delich-Gould is a senior vice president and trust & estate specialist with Capital Group Private Client Services in New York City.

Elizabeth Glasgow

Partner, McDermott Will & Emery

Elizabeth R. Glasgow is a partner at McDermott Will & Emery in Los Angeles. She focuses her practice on multigenerational wealth preservation and tax minimization, including the creation and implementation of dynasty trusts, business succession plans, asset protection strategies and charitable giving structures for business owners, real estate investors, entrepreneurs, and families managing inherited wealth. Elizabeth provides comprehensive advice on a wide range of issues facing mobile high net worth individuals and geographically dispersed families, including coordinated income tax planning across multiple jurisdictions. She is also an experienced counselor to the non-profit community and works with a variety of tax-exempt entities in fulfilling their charitable missions by ensuring proper formation and management of their organizations.

Michael Schmid

Michael Schmid is a wealth specialist at Capital Group Private Client Services in Los Angeles.