07.18.19

A Federal Opportunity Zone is a designated area where new investments and developments may be eligible for preferential tax treatment! Areas of Scranton, including all of downtown, Jessup, Peckville, Blakely and Wilkes-Barre are designated as Opportunity Zones by the Internal Revenue Service. The Scranton Opportunity Zone is shown in blue on the map below. You do not need to live or work in the Opportunity Zone, only invest capital gains in a Qualified Opportunity Fund and elect to defer the tax on that gain – Investors will be able to reduce their tax liability on capital gains by up to 15%, and ultimately will be able to eliminate capital gains taxes on investments made in Opportunity Zones.

The Opportunity Zones within the Scranton/Wilkes-Barre area are designed to spur economic development in our region by providing tax benefits to investors and developers. Specifically, investors and developers can defer tax on any prior gains by investing in a Qualified Opportunity Fund (QOF) until the investment in a QOF is sold or exchanged, or until December 31, 2026, whichever comes first. If the QOF investment is held for longer than 5 years, there is a 10% exclusion of the deferred gain. If held for more than 7 years, the exclusion increases to 15%. To meet this 7 year threshold and to receive the maximum benefit, investors and developers MUST invest in a QOF by December 31, 2019. There are only 5 months left to invest and get the full benefit!

Additionally, if the investor or developer holds the investment in the QOF for at least ten years, the investor will pay NO CAPITAL GAINS TAX on the return on the investment. There are numerous Qualified Opportunity Zone investment opportunities in Scranton, Jessup, Peckville, Blakely and Wilkes-Barre.

Maloney Law, P.C., can help you set up a Qualified Opportunity Fund (QOF) to receive these benefits for investments in eligible properties that are located in the Qualified Opportunity Zones in Scranton, Jessup, Peckville, Blakely and Wilkes-Barre.

For additional information, please contact Maloney Law, P.C. at: 570.309.3014, 201 Lackawanna Avenue, Scranton, PA 18503 and http://maloneylawpc.com/

Click HERE to see a more detailed map of the Qualified Opportunity Zones.