Opportunity Zones

Invest in businesses and real estate opportunities in designated
“opportunity zones” that can mitigate the taxation of capital gains and all
future appreciation is tax-free if held for ten years.

What is the Opportunity Zone Program?

The 2017 Tax Cuts and Jobs Act provides powerful new tax incentives for private investment
in businesses and real estate in certain communities called “opportunity zones.“
The act encourages investment in job creation and real estate opportunities such as
mixed-income housing.

Investors can plow recently realized capital gains into opportunity zones... erase a portion of those tax gains and, more significantly have those proceeds grow tax-free.

- Forbes, Break & Build, July 18, 2018

What is the goal of the program?

To incentivize private individuals and companies, that may be sitting on the sidelines with capital gains, to directly invest into Opportunity Zone Funds that can help investors achieve both favorable tax treatment and additional investment returns.

Strategic Opportunity Zone Fund

Strategic Rivermont OZ Fund

After tax net return on $1M investment1

After tax net return on $1M investment


How does it work?

1
Defer
Temporary deferral of taxable income for capital gains reinvested into an Opportunity Fund.
2
Reduce
Reduce your taxable gains by 10% for holding the investment for 5 years, and an additional 5% reduction if held for 7 years.
3
Tax-Free Gains
Hold your investment in an Opportunity Fund for 10 years, and all appreciation is TAX-FREE.

What does an average Opportunity Zone look like?

  • 8,700 Different Opportunity Zones located in all 50 states, and DC
  • 35 million people live in Opportunity Zones
  • +75% certified zones lie within metropolitan areas
  • 24 million jobs and 1.6 million places of business reside within Opportunity Zones today

Click below for an inactive map of all Opportunity Zones in the U.S.

Frequently Asked Questions

The tax legislation enacted in December 2017, called the Tax Cuts and Jobs Act of 2017, included a new tax provision designed to encourage investment in certain emerging communities – designated as QOZs – by allowing capital gains recognized prior to December 31, 2026 to be deferred and possibly reduced.

As identified by each state’s governor, there are over 8,700 QOZs in the US and its territories. While each QOZ had to meet certain economic thresholds, the data used to determine such eligibility is based on the 2010 census.

If an individual sells any property (e.g., stock, partnership interest, etc.) to an unrelated person before December 31, 2026 that generates a long-term or short-term capital gain, and invests an amount equal to or less than the total capital gain amount into a QOF within 180 days beginning on the date of such sale, then the individual may have the ability to receive various tax benefits.

Footnote

  1. $1 Million investment assuming a 7% annual appreciation, and a hold period of 10 years, when compared to a traditional portfolio with the same return. The above hypothetical example is not indicative of the fund’s return, and there are no assurances that the fund will meet the example above. Past performance is not indicative of future results. Future returns are not guaranteed. A loss of principal may occur.

Contact our firm to learn more about how you can take advantage of opportunity zones.

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