11/08/2021
Diversify your investments like the 1%. For centuries, the 1% has used real estate as a wealth creation tool. They focus on investing in high
quality, top tier commercial assets. And unless you had a rich uncle with Wall Street connections, regular investors have been excluded from investing in these types of multi-million dollar assets. Until today.
Presenting The Qualified Opportunity Zone Fund from Opus.
What is an Opportunity Zone?
To drive economic development in low-income neighborhoods, the Tax Cut and Jobs Act of 2017 (TCJA) created Opportunity Zones (OZ), or “O-Zones” for short.
These areas of the U.S. — both rural and burgeoning lower-income urban communities — have historically been capital-deprived, but have potential for future growth. In these specially designated areas, qualifying investments receive material tax benefits worth noting.
Why Should You Care About an Opportunity Zone?
Choose Opportunity Zones and you can:
Re-invest any form of capital gains.
Defer your taxes on your original capital gain until the end of 2026.
Reduce your taxes by up to 15% when you invest in an Qualified Opportunity Fund for at least 7 years.
Completely eliminate the tax on new capital gains from your Qualified Opportunity Fund investment after the 10-year mark.
That means compared to a typical portfolio, you have the potential to double your after-tax profits with an Qualified Opportunity Fund.
A Qualified Opportunity Fund (QOF) is an investment vehicle that is set up as either a partnership or corporation for investing in eligible property that is located in an Opportunity Zone and utilizes the investor's gains from a prior investment for funding the Opportunity Fund.
How does the opportunity zones program work?
An investor sells an asset and generates a capital gain. The capital gains from that investment must be reinvested within 180 days into a designated Opportunity Zone (OZ). An OZ is a specially designated census tract. Large parts of the U.S. are eligible for designation, including many commercial, industrial and residential areas.
If the investment is held, the capital gains liability on the original investment will be reduced by 10% after five years and by 15% after seven years. After 10 years, the new capital gains taxes generated from the opportunity fund investment are reduced to zero.
A. Opportunity Zones are designed to spur economic development by providing tax benefits to investors. First, investors can defer tax on any prior gains invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on which the investment in a QOF is sold or exchanged, or December 31, 2026.
Unlike 1031 Exchanges, Opportunity Funds require investors to reinvest only their capital gain within 180 days in order to qualify for tax
benefits. ... Also unlike 1031 Exchanges, investors can invest in Opportunity Funds directly, and are not required to go through an intermediary.
Can anyone invest in them? Investing in an opportunity zone is not for everyone, but for the right investor, it could be a once-in-a-lifetime tax break. Opportunity zones are designated as economically distressed areas by each state and certified by the US Department of the Treasury
What are Opportunity Zones and how do they work? Opportunity Zones are tax incentives to encourage those with capital gains to invest in low-income and under capitalized communities.
A qualified Opportunity Fund is a U.S. partnership or corporation that intends to invest at least 90% of its holdings in one or more Qualified
Opportunity Zones. ... Property such as factory equipment or real estate located within a qualified Opportunity Zone.
We believe this is one of the most beneficial tax reforms in decades.
