Opportunity zone
A designated low-income area where investing capital gains through a qualified fund can bring federal tax benefits. The rules and holding periods are detailed, so talk to a tax pro.
Also called: OZ, qualified opportunity zone, QOZ, opportunity fund
Related terms
Tax on the profit from selling an asset, based on the sale price minus your cost basis. Many homeowners can exclude part of the gain on a primary residence they have lived in long enough.
A federal tax rule that lets an investor defer capital gains tax by selling an investment property and buying another under strict timelines and rules. Talk to a tax pro first.
What you paid for a property plus certain purchase costs and improvements, minus depreciation taken. It is subtracted from the sale price to figure your taxable gain.
A deal where a sponsor pools money from many investors to buy a larger property. Investors are usually passive, and these offerings fall under securities law.