· CAPITAL GAINS · OPPORTUNITY ZONES · TAX DEFERRAL · INVESTMENT
Structured Correctly, Opportunity Zone Investments Reduce Your Tax Bill
Opportunity Zone investments let you defer, and potentially reduce, capital gains taxes by reinvesting in designated communities. The structure has to be right from the start, and Archer Lewis makes sure it is.
Our Approach
The tax benefits are real when the structure is right.
Opportunity Zones were created to channel private investment into economically distressed communities, and the tax incentives are significant. Investing eligible capital gains into a Qualified Opportunity Fund within 180 days of a sale allows you to defer the original gain, potentially reduce it, and eliminate tax on appreciation in the new investment entirely if held long enough. The rules are detailed, and the structure, timing, and documentation must be correct from the beginning, since errors are difficult to correct after the fact. Archer Lewis works with investors, developers, and business owners to structure Opportunity Zone investments that hold up, from initial investment through exit.
What's Included
Opportunity Zone services from investment through exit
Opportunity Zone tax benefits span years. The planning, compliance, and reporting have to be managed carefully throughout the entire hold period.
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Eligibility Analysis
We determine whether your capital gain qualifies, confirm the 180-day reinvestment window, and evaluate the investment opportunity against the OZ requirements.
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Qualified Opportunity Fund Structuring
Proper QOF formation and structuring is the foundation of every OZ investment. We make sure it's done correctly before money moves.
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Annual QOF Reporting
QOFs have annual self-certification and reporting requirements. We handle them accurately and on time.
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Qualified Opportunity Zone Business Compliance
If the QOF invests in an operating business, that business must meet ongoing QOZB requirements. We monitor and document compliance throughout the hold period.
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Exit Planning
The tax benefits at exit depend on holding period and structure. We plan the exit strategy from the beginning, not at the end.
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Tax Return Reporting
Opportunity Zone investments require specific disclosures and elections on your tax return. We prepare them correctly every year.
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Integration with Overall Tax Strategy
OZ investments don't exist in isolation. We integrate them with your broader capital gains planning and tax position.
A meaningful tax benefit, available if the requirements are met throughout the hold period.
The most significant benefit of an Opportunity Zone investment is the potential to eliminate tax on appreciation entirely, if the investment is held for at least ten years and the structure meets every requirement along the way. Archer Lewis manages the compliance and reporting throughout the hold period, so the benefit you invested for is realized at exit.
Talk to an OZ Specialist
Common Questions
What investors ask about Opportunity Zones.
An Opportunity Zone is a designated census tract, typically an economically distressed community, where investments through a Qualified Opportunity Fund receive preferential tax treatment. Investors can defer capital gains taxes by reinvesting eligible gains into a QOF within 180 days of the triggering sale.
Most capital gains qualify, including gains from the sale of stocks, real estate, a business, or other appreciated assets. The gain must be reinvested into a Qualified Opportunity Fund within 180 days of the sale that triggered it.
Three potential benefits: deferral of the original capital gain until the earlier of exit or December 31, 2026; a step-up in basis on the deferred gain if held long enough; and elimination of tax on appreciation in the OZ investment itself if held at least ten years.
A QOF is the investment vehicle, a partnership or corporation that holds Opportunity Zone property. It must meet specific asset tests, self-certify annually with the IRS, and invest substantially in qualifying OZ property or businesses. Formation and ongoing compliance matter significantly.
The tax benefits can be partially or fully lost, including the deferral on the original gain. That's why structure and ongoing compliance matter from day one. Archer Lewis monitors QOF and QOZB requirements throughout the hold period to protect the investment's tax treatment.
