Opportunity Zones Overview
What are Opportunity Zones?
OZs were created to boost economic activity in selected census tracts across the country. According to Brookings Institute there are 8700+ US Census Tracts designated as Opportunity Zones, out of which 19% are in already gentrifying areas.
What is an Opportunity Fund?
The Tax reform bill added Opportunity Funds as a new way to incentivize investment in specific communities called Opportunity Zones (OZs). An OZ Fund is an investment vehicle that invests at least 90% of its holdings in real estate within a Qualified OZ.
Why Invest in Opportunity Funds?
Opportunity Funds enable investors to defer federal taxes on recent capital gains until Dec 31, 2026, have that payment reduced by up to 15%, and pay as little as zero taxes on profits from an Opportunity Fund if that investment is held for 10 years.
How Investors Benefit
After selling an asset such as stocks or bonds, real estate, or interest in a partnership, an investor usually triggers a capital gain. These investors can receive special tax benefits by rolling their gain into an Opportunity Fund. The three primary reasons to roll your capital gain into an Opportunity Fund are:
Defer The Tax Payment
of your capital gains until Dec 31, 2026
Reduce The Tax
you owe by up to 15% after 7 years
Pay Zero Tax
of your capital gains until Dec 31, 2026
Opportunity Zone Benefits Over Time
Held for 5 years
– 90% of original capital gain invested is subject to tax
Held for 7 years
– 85% of original gain is taxed
Held for 10 years
– The OZ investment step-up in basis to market upon disposition, resulting in no taxable gain
How Big Is The Opportunity?
Total # of Opp Zones
% of US Population
% of US Tracts in List
Grocapitus Opportunity Zones are focused on investing in high-quality real estate in major US cities with long-term growth potential. We plan to take on massive value-add properties and new developments in Opportunity Zones to maximize cash flow and returns.
Novogradac Opportunity Zones Mapping Tool
About the Novogradac Opportunity Zone Mapping Tool
Designated opportunity zones displayed in the Novogradac Opportunity Zones Mapping tool are those that were nominated by those chief executive officers, and have been certified and designated by the Treasury Department. In addition, every low-income census tract in Puerto Rico was designated as an OZ in 2018 budget legislation. Once an OZ is designated, it remains a qualified OZ for a period of 10 years from the date of designation.
Opportunity Zone Webinars
Opportunity Zones – Unprecedented New Real Estate Tax Strategy: What You Need To Know
With Neal Bawa
Join Neal for an eye-opening, research driven look at one of the best tax deductions for real estate investors ever. This tremendous new tax incentive is paving the way for gigantic profits for savvy investors.If you are facing capital gains of any kind (stocks, business sale, or real estate) we’ll show you how this new tax law can help you defer, and in some cases completely erase, federal taxes… legally. The size of the opportunity zones is absolutely enormous. In fact, we are already investing in some of the designated areas because they are attrative even without the huge tax incentives.
Developing An Opportunity Zone Investment Strategy
With Stefan Schimenes
Reports And Additional Information
LOCUS NATIONAL OPPORTUNITY ZONES RANKING REPORT
Opportunity? YES! But There Are Some Pitfalls As Well...
Lately, I’ve been researching issues which could spell trouble for Opportunity Zone Funds, and their investors, unless they become more pro-active and savvy in the way they design and manage such funds. Here are just a few of the dangers of Opportunity Zones I discovered.
Beware Of Garbage Opportunity Zone Projects
Of all the risks associated with Opportunity Zone investing, perhaps the most pernicious is the influx of what I call “garbage projects” into the marketplace. Discover how to spot garbage projects and the 5 key areas I evaluate for all of my own projects….
OpportunityZones vs 1031 Exchanges, What You Need To Know
As Opportunity Zones have come increasingly into the spotlight, it appears they may actually have several advantages that make them preferable to one of the most popular capital gains tax reduction vehicles – 1031 Exchanges. Discover the pros and cons…
We have a team dedicated to moving very quickly to capitalize on this unprecedented opportunity that requires quick action. If you are a potential investor, we would love to talk with you about one of the most exciting investment developments in recent history. Contact us!
If you are a developer, fund manager, city planner, or are in some other way involved with Opportunity Zones, let’s talk!
NEW! Featured Investment – MILL RACE APARTMENTS AT PROVO STATION
Portfolio And Track Record
#1 Best Performing U.S. Metro 2017 & 2018
Projected 2.77x Equity Multiple and 17.56% IRR
This investment is Opportunity Zone qualified,however. If you are facing capital gains of any kind (stocks, business sale, real estate, …) this new tax law may help you defer, and in some cases completely erase, federal taxes.*
*You do not need to invest capital gains to qualify for this amazing opportunity.