A Historic Opportunity
|Deferral of Original Investment Capital Gains to the Earlier of the Fund Sale or 12/31/2026||Reduction of Original Investment Capital Gains Taxes||Tax Treatment of Opportunity Zones Investment Vehicle Capital Gains|
|Traditional Investment||Opportunity Zones Investment Vehicle|
|Less: Capital Gain Tax (23.8%)||(238,000)||-|
|After-Tax Investment Basis||$762,000||$1,000,000|
|Year 10 Value (assumes 7% annual Investment appreciation)||$1,498,969||$1,967,151|
|Less: Deferred Taxes on Invested
Gains Due 12.31.26
|Less: Year 10 Capital Gains (23.8%)||(175,399)||-|
|After Tax Return||$1,323,571||$1,764,851|
|OZ Investment Outperformance: 44.1%|
1OZ Investment Vehicle assumes all OZ tax incentives which include federal tax deferral to 12/31/2026 on harvested gains, 15% step-up in basis and the elimination of all federal taxes on capital gains due to a 10-year hold vs. the Standard Portfolio which is taxable in line with the current federal tax code”
Fool Me Three Times, Shame on Us
June, 2020 - Chad DeBolt on the current financial market and what sophisticated investors should be taking away.
Opportunity Zones: Think Long-Term, Diversify and Sell the Bounce
May, 2019 - Value versus growth investment strategies have long been a topic of spirited debate when attempting to analyze the optimal formula to outperform the market and maximize risk adjusted long-term returns.
Opportunity Zones: A Historic Tax-Efficient Mechanism to Leverage Real Estate
September, 2018 - It is our belief that we have just witnessed the passing of one of the most innovative and impactful bi-partisan sponsored tax legislations in recent history. While the impact will be wide reaching, it is difficult to fully appreciate the potential benefits that will be directly attributed to the Opportunity Zone Program, including economic growth, job creation, social impact, financial profit and increased future municipal tax revenues. Surprisingly the program remains relatively unknown to both retail and institutional investors despite the impressive opportunity surrounding the recent legislation.