Understanding the Work Opportunity Tax Credit for Your Employees
Opportunity Zones were created with the Tax Cuts and Jobs Act (TCJA) as an incentive to contribute capital into low-income or economically distressed areas of the country, identified by census tracts.
If you have gain, an investment within an opportunity zone provides the ability to defer paying tax on that gain. If the requirements are met, you can defer the tax on the gain until 2026. Depending on how long you hold the opportunity zone investment, you could receive up to 15% reduction in the deferred gain. If the investment is held for at least 10 years, any appreciation on the investment can be tax-free.
The potential to permanently reduce tax paid can be quite powerful. In addition, Opportunity Zones present a unique alternative to a 1031 exchange by only requiring the amount of the gain to be reinvested, not the entirety of the prior investment.
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The Lurie Difference: A Streamlined Process
Lurie’s Specialty Tax Services advisors offer unique tax savings and reduction strategies for businesses and their tax concerns. The team works closely with you and your service partners to provide counsel and execution on matters that extend far beyond compliance. This close collaboration provides not only coordinated, seamless service with specialists who have deep expertise, but also delivers true dollar cost savings. Here is what to expect:
We Examine Your Indicators
Hiring of specific groups of employees including veterans, ex-felons, SNAP recipients, SSI recipients, etc.
We Help You Uncover Benefits
Tax credits related to hiring eligible employees – assistance with certification and calculation of the credit
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If you have triggered a capital gain, or are planning on selling stock or assets that will generate a capital gain, you may want to