Opportunity Zones Connect Private Capital with Economic Growth

Opportunity zones were created to stimulate long-term private investments in low-income urban and rural communities nationwide. Conceived as part of the Tax Cuts and Jobs Act of 2017, opportunity zone fund investments are intended to promote economic growth in distressed areas by providing tax benefits to investors.

Tax Advantages that Grow with Time

With three levels of tax advantages, opportunity zone investments can lead to a permanent elimination of capital gains taxes.

Initial Tax Deferral

Defer capital gains taxes from initial sale of stocks, bonds, real estate, businesses and other assets, by investing in a qualified opportunity zone fund.

Partial Elimination

Capital gains taxes can be partially reduced 10% or 15%, if, as of December 31, 2026, the investment is held for 5 years or 7 years, respectively.

Complete Elimination

Exclusion of gain from fund appreciation if held for at least 10 years.

The level of tax deferral grows over time as long as the investment is maintained in the fund.

Capital gains from the sale of almost any type of appreciated asset can be reinvested in a qualified opportunity fund to achieve partial or complete elimination of tax. Capital gains may have resulted from the sale of:

Stocks

Bonds

Mutual funds

Real estate

Business sale

Other assets

Art

Bitcoin

How to Invest

Invest capital gains from a third-party sale into a qualified opportunity zone fund within

180 DAYS.

On your tax return, indicate that capital gains from your sale were reinvested in a qualified opportunity fund.

Designed to Promote Economic Growth

The governor of each state and five U.S. territories designated up to 25% of eligible census tracts as an opportunity zone, resulting in nearly 9,000 active opportunity zones across the country.

Qualified opportunity funds may invest in:

  • Real property, including land real estate developments, renovations or repositioning
  • Businesses
  • Equipment

*90% of assets in a qualified opportunity fund must be invested in qualified opportunity zone property.

Always remember that each property is unique and past performance is no guarantee of future results. Real estate-related investments involve substantial risks.

There are tax risks associated with an investment in the Investor Units, including the possibility that government regulations regarding Opportunity Zone investments may change.

Information about properties must be read in conjunction with the confidential private placement memorandum for each Opportunity Zone Fund, which contains additional important risk disclosures and more specific information about each Fund. This is neither an offer to sell nor a solicitation of an offer to buy an Opportunity Zone Fund and is for educational purposes only. Prospective investors should consult their own tax advisors to evaluate the tax consequences of an Opportunity Zone Fund interest.