Many investors hold sizable unrealized capital gains in stocks and mutual funds alone. To improve the profitability of these resources, various Low-Income Census tracts, five of which are located in Collier County, were designated as qualified Opportunity Zones by the federal Tax Cut and Jobs Act of 2017.
Investors in these zones can defer capital gains taxes while supporting distressed communities through private equity investments in businesses and real estate ventures. The incentive is a deferral, reduction, and potential elimination of certain federal capital gains taxes depending on how long the investment is held.
The five designated areas in Collier County are:
- Three census tracts in and around Immokalee, from Lake Trafford to the west to the county line to the east
- The Naples Manor community west of Collier Boulevard, north of U.S. 41 East and south of Rattlesnake Hammock Road
- Land in Golden Gate, west of Collier Boulevard, south of Golden Gate Parkway and east of Santa Barbara Boulevard