https://www.forbes.com/sites/forbesdigitalcovers/2018/07/17/an-unlikely-group-of-billionaires-and-politicians-has-created-the-most-unbelievable-tax-break-ever/"The heart of this new law: Opportunity Zones, or "O-zones," low-income areas designated by each state. Investors will soon be able to plow recently realized capital gains into projects or companies based there, slowly erase the tax obligations on a portion of those gains and, more significantly, have those proceeds grow tax-free. There are almost no limits. No limits on how much you can put in, how much tax you can avoid and, for most of the country, the types of taxes you can avoid, whether federal, state or local. No limits on how long those proceeds compound tax-free. And precious few limits on what types of investments you can make."
Let's dig into this new tax law and figure out how bitcoiners with high capital gains can take advantage of this legal gift from Washington.
This topic is more of Economics to me than legal but on a second look its just might be right here as we are talking about the law that has been enacted and how blockchain startups can take advantage of it. Firstly, I think its a good one to want to encourage development in certain areas of the country and identifying and admitting leaving this to the hands of government might not happen in a lifetime because most times, concentration is always on the major cities that diplomats and foreign nationals will only visits. It then falls back to the private sector to take the bold step and develop the areas concerned. Over here too, there is some form of incentive for businesses that invest in areas where some basic facilities have not been provided by government in a way of tax incentives.
For crypto related start ups, I think there is still more need to understand the details of the law if it makes provision for that and also understand what is required of them to be eligible for the tax incentive because I don't expect a crypto start up which just have a branch of their office or just apartment to run their online activities to be eligible. So, in essence there is need to do more understanding by employing the services of professional lawyers before taking the decision to set up business based on face value information.