# Opportunity Zone

*Real Estate — Finicade finance glossary*

Opportunity zones are designated low-income areas where investing realised capital gains defers the tax and, after ten years, eliminates it on the gain.

Opportunity zones are designated low-income areas where investing realised capital gains defers the tax and, after a ten-year hold, eliminates tax on the new investment's appreciation entirely. The incentive is genuinely large. Evidence on whether it directed capital to communities that needed it, rather than to already-gentrifying tracts that qualified on stale data, remains mixed.

**Also known as:** qualified opportunity zone, QOZ, opportunity fund

**Related terms:** [Capital Gains Tax](https://finicade.com/glossary/capital-gains-tax), [1031 Exchange](https://finicade.com/glossary/1031-exchange), [Zoning](https://finicade.com/glossary/zoning), [Real Estate Syndication](https://finicade.com/glossary/real-estate-syndication), [Tax Deferral](https://finicade.com/glossary/tax-deferral)

Source: https://finicade.com/glossary/opportunity-zone