Robert Matt

MIAMI—The saying that “timing is everything” has never rang truer than when one is investing in an Opportunity Zone fund. Beginning with the date of your sale, the clock starts ticking on the 180-calendar-day window to invest before triggering a gain.

If you happen to have a gain recognized for federal tax purposes on Dec. 31, 2018, your reinvestment should have happened no later than June 28, 2019. Before this date, investors were able to reduce tax liability on realized capital gains from 2018 by investing those profits into a Qualified Opportunity Fund. These funds would then invest in businesses or properties located within Opportunity Zones. For investors facing a stiff tax burden from capital gains in 2018, this was the time to potentially reduce their tax liability.

Some high net worth investors and family businesses opted to invest in single opportunities since they have a lower overhead than a commingled fund and may coexist with current operating companies or investments. However, in order to participate in these deals, investors needed to have set up a private Qualified Opportunity Zone fund before that June 28th deadline.