Opportunity Zones

Q.What are Opportunity Zones and how do they work?

A.Opportunity Zones are tax incentives to encourage those with capital gains to invest in low-income and undercapitalized communities.

HOW DO OPPORTUNITY ZONES WORK, WHO CAN CLAIM THE INCENTIVES, AND WHAT PROJECTS CAN THEY SUPPORT?

The Tax Cuts and Jobs Act included a new federal incentive—Opportunity Zones—meant to spur investment in undercapitalized communities. Any corporation or individual with capital gains can qualify. The program provides three tax benefits for investing unrealized capital gains in Opportunity Zones:

Temporary deferral of taxes on previously earned capital gains. Investors can place existing assets with accumulated capital gains into Opportunity Funds. Those existing capital gains are not taxed until the end of 2026 or when the asset is disposed of.
Basis step-up of previously earned capital gains invested. For capital gains placed in Opportunity Funds for at least 5 years, investors’ basis on the original investment increases by 10 percent. If invested for at least 7 years, investors’ basis on the original investment increases by 15 percent.
Permanent exclusion of taxable income on new gains. For investments held for at least 10 years, investors pay no taxes on any capital gains produced through their investment in Opportunity Funds (the investment vehicle that invests in Opportunity Zones).

Investors can take advantage of one or more of the benefits.

Apart from a few “sin” businesses, Opportunity Funds can finance a broad variety of activities and projects. Funds can finance commercial and industrial real

A combined 75 years of experience in Real Estate Investing, Development and Management.
Our deals have exceeded more than $1 billion in Real Estate assets.

AMAZING TENANTS & POSITIVE ROI
Our tenants have long-term leases, with profitable businesses, loyal clients and provide attractive services
that draw the local community in our selected opportunity zone fund!

Opportunity Zones Tax Benefits

Opportunity Zones Tax Benefits can be found when a capital gain is invested appropriately in a Qualified Opportunity Zone Fund (QOF) and include three primary benefits:

Tax Deferral: You can elect to defer the capital gain you invest until the earlier of December 31, 2026 or whenever you sell your qualified fund investment.
Step-Up Benefits: You can get a step-up in the capital gain you are deferring if you invest long-term. If you hold the investment for five years, you get a 10% step-up. If you hold it for seven years, you get an additional 5% step-up, for 15% total. This means you could potentially not pay tax on 15% of the capital gain that you invested in a QOF.
No Capital Gain Tax on Appreciation: If you hold the QOF investment for 10 years or more, there is no tax on the capital gain when you sell your QOF investment on any appreciation that has occurred from the initial time of the investment. This means that if you invest $1 million dollars today in a QOF and the investment is worth $3 million 10 years from now, then the $2 million increase is basically tax free.

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Disclaimer: This marketing is intended for accredited investors who have the financial means, experience, and knowledge to make investments into complex and illiquid financial products. It is intended for educational purposes only and should not be construed as investment or financial advice.

Disclaimer