Opportunities for Investing in Edenton and Chowan County

Tax Incentives for Investments in Opportunity Zones -many census tracts outside of the downtown area in Chowan County qualify. 

• Investors defer paying tax on capital gains (9 years) if those gains are invested in Qualified Opportunity Funds that invest in Certified Opportunity Zones
• The gain must be invested in the Qualified Opportunity Fund during a 180-day period that begins on the date of the sale or exchange that generated the gain
• Deferral is temporary, the gain must be recognized on the earlier of Dec. 31, 2026, or the date the investment in
  the Opportunity Fund is sold or exchanged
• The amount of includable gain is the lesser of the gain originally deferred or the excess of the fair market value of
  the investment over the taxpayer’s basis in the investment
• Long-term investment is incentivized by allowing a modest step-up in basis for investments that are held beyond
  5 and 7 years.
• For investment held at least five years, the taxpayer’s basis is increased by 10 percent of the original gain.
• For investments held for at least seven years, the taxpayer’s basis is increased by 5 percent of the original gain.
• As an additional incentive to make long-term, patient capital investments, taxpayers holding Opportunity Fund
  investments for at least 10 years are exempt from any additional gains beyond what was previously deferred.