Opportunity Zone Tax Benefits
A guide to how a permanent Opportunity Zone program can turn a good investment into a great one.
If you’re sitting on a large capital gain, an Opportunity Zone investment can defer what you owe, reduce it over time, and, if you hold for ten years, allow the growth to be excluded from federal tax at exit. This guide walks through what changed when the program became permanent in 2025, what the benefit is worth in real dollars, and how to evaluate whether a specific investment is right for you.
Best For: Accredited investors, business owners, and RIAs/CPAs advising clients with a recent or upcoming capital gain.
Time to Read: ~15 minutes
What You’ll Discover
This guide breaks down how the 2025 tax law reshaped the Opportunity Zone program, what the benefits are actually worth over a ten-year hold, and how to evaluate whether an investment and its sponsor are the right fit before the tax treatment enters the conversation.
- How the program became permanent in 2025, and what changed for investors
- The three core tax benefits: deferral, basis step up, and permanent exclusion on appreciation, illustrated with a real dollar example
- What questions to ask before choosing an Opportunity Zone sponsor
Disclosure
The information provided in this document is for general informational and educational purposes only and is not intended to be all-inclusive. The information contained herein does not constitute legal, compliance, tax, or financial advice. This communication is not a recommendation of any security, strategy, or service. Any such recommendation or solicitation would be made under separate cover.
The information in this document is general in nature and may not apply to your specific situation. Actual results will depend on individual tax circumstances, timing of placement in service, applicable tax law, and IRS guidance in effect at the time the property is placed in service. Investors should consult their own qualified tax advisor or attorney to evaluate the impact of any investment on their specific situation.
Bonaventure cannot guarantee the accuracy or completeness of this material and is under no obligation to keep this information current. This communication should not be shared or disseminated beyond its intended limited audience.
