Selling real estate, stocks, or a business can lead to significant financial gain—but that success can quickly be overshadowed by a heavy capital gains tax bill. Depending on your federal tax bracket, you could end up paying a large portion of your profits to the IRS.

That’s why it’s crucial to understand how to save on capital gains tax—and one of the most powerful tools available in 2025 is the enhanced Opportunity Zones program.

At Hudson & Empire, we help individuals and businesses use legal strategies like Opportunity Zone investments to defer, reduce, and in some cases eliminate capital gains taxes entirely.

What Are Opportunity Zones?

Opportunity Zones are specially designated areas where the government provides tax incentives to encourage investment. When you reinvest your capital gains into a Qualified Opportunity Fund (QOF), you may become eligible for powerful tax advantages.

With Opportunity Zones 2.0 rolling out in 2025, the program is now more inclusive and investor-friendly—offering expanded access, simplified rules, and enhanced benefits for a broader range of taxpayers.

How to Save on Capital Gains Tax Through Opportunity Zones

Here’s how you can use the updated Opportunity Zone regulations to minimize your tax burden and keep more of your earnings.

1. Defer Capital Gains Tax Until 2028

The Challenge: Normally, capital gains tax is due the year you sell your asset.

The Advantage: By reinvesting into a Qualified Opportunity Fund, you can delay paying capital gains tax until 2028.

How We Help: Hudson & Empire reviews your transactions, calculates your tax exposure, and compares various deferral strategies—like QOFs vs. 1031 exchanges—to determine your best option.

2. Opportunity for Smaller Investors

The Challenge: Original Opportunity Zone rules primarily benefited ultra-wealthy individuals.

The Advantage: You can now invest up to $10,000 of ordinary income into a QOF—even without a large capital gain.

How We Help: We guide everyday investors through eligibility requirements and connect you with reputable QOF partners who align with your investment size and goals.

3. Simplified Investment Zone Maps

The Challenge: In the past, it was difficult to know which areas qualified as Opportunity Zones.

The Advantage: New mapping standards focus on zones where household income is under 70% of the median, making investment locations easier to identify.

How We Help: Using advanced digital mapping tools, we help you confirm zone eligibility and discover high-potential investment opportunities.

4. Enhanced Incentives for Rural Investments

The Challenge: Rural Opportunity Zones were often overlooked due to perceived risk.

The Advantage: Rural zone investments now come with a 30% tax basis boost and only require 50% property improvement, instead of the previous 100%.

How We Help: Our tax experts compare urban and rural options, helping you identify under-the-radar investments that may yield higher after-tax returns.

5. Easier Compliance and Lower Audit Risk

The Challenge: Opportunity Zone compliance was previously vague and paperwork-heavy.

The Advantage: The 2025 updates bring streamlined reporting forms and standardized requirements that reduce the chance of errors or audits.

How We Help: Hudson & Empire manages all compliance and documentation on your behalf—from IRS filings to investment reports—so you stay audit-ready without the stress.

6. Planning Ahead for 2026 and Beyond

The Challenge: The current Opportunity Zone program sunsets at the end of 2026.

The Advantage: A new round of Opportunity Zones launches in 2027, focusing more on underserved and rural communities.

How We Help: We create a forward-looking tax strategy to help you decide whether to invest now or wait for the next wave of incentives, based on your goals and timeline.

What Hudson & Empire Will Do for You

Here’s what our New Jersey-based tax advisory team offers to help you save on capital gains tax with clarity and confidence:

Capital Gains Tax Review
We evaluate your recent sales and investment activity to determine how much you owe—and how much you could save.
QOF Advisory and Introductions
We connect you with vetted Qualified Opportunity Fund managers aligned with your investment size and industry interests.
Entity Structuring for Maximum Benefit
We help you form the right legal entity (LLC, partnership, etc.) to optimize your tax savings and investment flexibility.
Full-Service Compliance Management
From paperwork to deadlines, we handle all filings so your investment remains fully compliant.
Customized Exit Strategies
Whether you're planning a 5-, 7-, or 10-year hold, we’ll structure your timeline to unlock maximum tax benefits on your exit.

Want to Know How to Save on Capital Gains Tax in 2025?

If you’re selling a property, portfolio, or business and want to protect your profits, now is the perfect time to explore Opportunity Zones. The 2025 updates make the program more accessible, transparent, and rewarding for individuals—not just big institutions.

Get in touch with Hudson & Empire for a free consultation and get a personalized capital gains tax reduction strategy—tailored to your needs—within 10 business days.

How to Save on Capital Gains Tax in 2025 with Opportunity Zones