What is a Tax Opportunity Zone?
Opportunity Zones are tax incentives to encourage those with capital gains to invest in low-income and undercapitalized communities.
According to the IRS, over 8,700 Opportunity Zones in all 50 states were added to the US tax code as an economic development tool, designed to spur economic growth and job creation in those communities nominated by state governors and certified by the Secretary of the U.S. Treasury.
The Opportunity Zones program is designed to spur economic development by providing three tax incentives to taxpayers:
- First, a taxpayer may defer paying tax on any prior gains invested in a Qualified Opportunity Fund until the earlier of 1) the date the investment is sold or exchanged, or 2) December 31, 2026.
- Second, if the Opportunity Fund investment is held longer than 5 years, there is a 10% exclusion of the deferred gain. If held for more than 7 years, the exclusion is 15%.
- Third, if the taxpayer holds the investment in the Opportunity Fund for at least 10 years, the taxpayer is eligible for an increase in basis of the Opportunity Fund investment equal to its fair market value on the date that Opportunity Fund investment is sold or exchanged.
All incentives are related to capital gains, and all are tied to the length of time an investment is held in an Opportunity Fund. A taxpayer may defer capital gains tax by investing capital gain(s) in an Opportunity Fund within 180 days from the date of the sale or exchange of stock or property.
Tax Opportunity Zones on Kauaʻi
Kilolani is located in one of Kauaʻi’s only two Tax Opportunity Zones. The property is on Kauaʻi’s South Shore, within the Kukui’ula area.
This Tax Opportunity Zone benefit makes Kilolani at Kukui’ula the ideal property investment on Kauaʻi! Call or email us today to learn more!
Pre-Construction units are now available!
Located alongside the rolling greens of the Kiahuna golf course in the heart of Poʻipū, this private enclave of just 279 homes encompasses Kaua‘i living at its best.
Spacious two, three, and four-bedroom residences feature open floor plan designs, island-style architecture, and amenities that include two pools and spas, a clubhouse with a restaurant and fitness center, a poolside pavilion, barbecue areas, and more.
Request more information
Kilolani at Kukuiʻula is currently available for investment partners! Call 808-482-5004 or fill out the form below: